Japan’s new leader, Shigeru Ishiba, may have gotten key talking points from a phone call with U.S. President Donald Trump on Friday. Specifically, they zeroed in on important priorities for both trade and security cooperation. The conversation concluded an intense 45 minutes, emphasizing common interests and positive collaboration. There is still work needed to overcome barriers from both nations.
Trump started the talks to improve economic relations between Japan and the U.S. among numerous reasons. The discussion soon turned in a fascinating direction as they began dissecting Trump’s recent trip to the Middle East. This was a big broadening of their discussions well beyond trade issues. During their joint press conference, the two leaders highlighted the strengthening security cooperation between the United States and Japan.
Ryosei Akazawa, Japan’s chief tariff negotiator and Economic Revitalization Minister, is making last minute preparations for a historic trip. After this meeting, he will fly to Washington for a third round of negotiations with his U.S. counterparts. She has been at the center of the negotiations of Japan’s state on tariffs. As such, he has been an outspoken proponent for the removal of all recent U.S. tariff measures, including those listed in the U.S.
Even with some tariff relief granted by Trump on Japan’s side, the general picture shows profound trade barriers. Specifically, the U.S. still maintains elevated tariffs on a variety of steel and aluminum products. On top of that, it leaves in place a 25% tariff on Japanese imported autos. Japan’s economic success rests largely on free and fair trade with the U.S., especially for Japanese automakers. In this context, these discussions are especially important for both countries.
Ishiba pressed Japan’s case over U.S. tariffs. He promised that Japan would “proactively” keep pressing Washington to eliminate all newly imposed tariff measures. He is very much committed to the effort to bring more Japanese investment to the United States. This strategic counter-move would ensure new job production in exchange for granting tariff reductions.
“I expressed my expectations for productive discussion to be held, and we agreed,” – Shigeru Ishiba
It married the two leaders’ demands into a single, triumphant compromise. They’re slated to take their discussions further at the next Group of Seven summit in Canada next month. Past rounds of Japan-U.S. negotiations have repeatedly been unable to produce any major concessions from the American side. As Ishiba and Akazawa set the stage for more substantive discussions to come, the stakes are getting higher.
As China and the United States continue to work through these difficult bilateral trade challenges, the need for continued dialogue is clear. The result of those discussions could have major impacts on the economic relationship between Japan and the United States.
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