Japan is standing firm in trade talks with the US — and it’s all about cars. Prime Minister Shigeru Ishiba made it clear that Japan won’t sign any trade deal that leaves out auto tariffs. This issue has become a major sticking point as both countries try to work out an agreement.
When asked in parliament about a possible early agreement that skips car tariff discussions, Ishiba said no way. Japan wants a full and fair deal — one that includes the future of its auto industry.
The US and Japan are set to speed up talks later this month. Japan’s chief trade negotiator, Ryosei Akazawa, hopes some progress can be made by June. Reports suggest a deal could be finalized by early July — just as Japan heads into national elections.
Japan is offering some compromises. Which the officials have proposed:
- Increasing Japanese car investment in the US
- Working more closely with the US on shipbuilding projects
These moves are meant to build trust and encourage a balanced deal.
But Japan has also drawn a firm line. As Ishiba has made it clear that Japan won’t give up protection on its farming sector just to get a deal for automakers. Agriculture and autos both are critical industries, and Japan isn’t willing to trade one for the other.
This comes as Japan faces economic pressure. Some analysts believe the economy shrank in the first quarter — and that was before the US’s 25% auto tariffs kicked in. Meanwhile, the US has already made progress on deals with the UK and China. This adds up to the urgency of getting a trade deal.
