TOKYO – Japan’s Prime Minister Shigeru Ishiba indicated on Tuesday that his government is currently exerting final efforts to persuade U.S. President Donald Trump to exempt Japan from the upcoming increase in auto tariffs set to go into effect on Wednesday.
Ishiba mentioned to the press that he is prepared to journey to Washington to engage in direct negotiations with Trump. The United States is scheduled to commence imposing 25% tariffs on automobile imports on Thursday, with duties on fully-imported vehicles beginning at midnight, U.S. time. Moreover, these tariffs are anticipated to extend to relevant auto components in the following weeks.
Up to now, Japan has not been successful in securing exemptions from the tariff list despite being the primary U.S. ally in Asia. Japan has intensified collaboration with other nations also impacted by the tariffs. Japanese Trade Minister Yoji Muto flew to Seoul to confer with his counterparts from South Korea and China, reaching an accord to advocate for free and equitable trade and investment, citing that Trump’s trade strategies are fostering protectionism.
The higher tariffs are a worry for Japan and major automakers like Toyota Motor Corp. and Honda Motor Co. Their exports to the United States are a major driver for the Japanese economy. A quarterly survey by the Bank of Japan released Tuesday showed business sentiment among large manufacturers worsened in the past quarter for the first time in a year.
“I don’t mind going to Washington, if necessary,” Ishiba said.
He said officials from all related ministries, including foreign, trade and finance, are working “day and night,” to negotiate with their U.S. counterparts to resolve the issue. “When I see the overall picture and judge that it is appropriate for me to go, I must do so without hesitation, he said.
If the tariffs are imposed, he said the government will do what it must to minimize their impact on Japanese industries and jobs.
As short-term measures, the government plans to set up 1,000 consultation windows across the country to respond to concerns of small to medium-size auto parts makers and other manufacturers that would be affected by the U.S. tariff increase.
In case of damage to actual businesses, the government will do its utmost to support cash-strapped business owners, Ishiba said.
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