According to foreign media reports, a few days ago, Japan’s chief trade negotiator Ryosei Akazawa said that Japan could not accept the 25% tariff imposed by the United States on imported cars, adding that Japanese car companies produce far more cars in the United States than export to the United States.
Ryo Akazawa said before leaving for Washington for the seventh round of U.S.-Japan trade talks that Japanese car companies produce about 3.3 million cars in the United States each year, much higher than the 1.37 million exported to the United States. He also pointed out that Japanese automobile-related companies have invested more than $60 billion in the United States and created 2.3 million jobs locally.
Image credit: Subaru Motors
Ryomasa Akazawa said, “We have repeatedly explained to the United States that the Japanese automobile industry has made a great contribution to the American economy, and we will continue to explain this clearly and seek the understanding of the United States.” From any point of view, we believe that a 25% tariff on cars on Japan is unacceptable. ”
The automobile tariff issue has now become a central point of contention in bilateral negotiations between the United States and Japan – the United States insists on reducing the automobile trade deficit with Japan, while Japan fully defends the pillar industry of automobiles. After six rounds of consultations that lasted more than two months, the two sides have not been able to make a breakthrough on the tariff issue.
Ryomasa Akazawa also said that of the 3.3 million cars produced in the United States, about 300,000 will be exported from the United States to other countries, which will also help create a trade surplus for the United States.
Despite this, Japan’s trade surplus with the United States reached 8.6 trillion yen ($59.4 billion) last year, the fifth-highest trade surplus in the history of Japan-US trade, with about 82% of the difference coming from automobiles and auto parts. The trade balance has made Japanese auto exports a target for Trump, and the president, who pursues the “America First” principle, is trying to reduce the U.S. trade deficit by raising import tariffs.
Before Ryo Akazawa was heading to Washington, the capital of the United States, Japanese Prime Minister Shigeru Ishiba and US President Donald Trump had previously failed to reach an agreement on US tariffs at the G7 summit. Like other countries, Japan faces dual pressure from the United States on a full reciprocal tariff and industry-specific tariffs. If negotiations fail, the general tariff will rise from 10% to 24% on July 9, and the industry tariffs include a 25% tariff on automobiles and parts, and a 50% tariff on steel and aluminum.
The Japanese government has maintained its position of trying to resolve all tariff disputes at once through a package package, including industry tariffs. Ryomasa Akazawa said he would keep the July 9 deadline in mind, but said that setting a clear deadline could weaken Japan’s negotiating position.
U.S. tariff policies have had an impact on the Japanese economy, with Japan’s exports to the United States, especially automobiles, falling sharply. Ahead of Japan’s upper house elections on July 20, the country’s economy is at risk of falling into a technical recession.