Japan Won’t ‘Concede Everything’ to U.S. in Trade Talks, Prime Minister Says

By Luo Zilin and Lu Zhenhua

Japanese Prime Minister Shigeru Ishiba said Monday that Japan will not continue conceding to U.S. demands in order to reach a deal on tariffs, as Tokyo looks to schedule the next round of ministerial talks with Washington as early as late next week.

“If Japan concedes everything, we won’t be able to secure our national interest,” Ishiba told parliament. The two countries have concluded initial talks, during which Washington demanded that Japan pay more for stationing American troops, increase purchases of U.S. automobiles, and help reduce the U.S. trade deficit, according to the Asahi Shimbun.

“We have been working to protect Japanese agriculture using various methods, such as tariffs and minimum access rules,” Ishiba told the House of Councillors’ budget committee. “We must continue to protect it, and of course, we must also protect consumer safety.”

Ishiba did not specify what Japan might offer but ruled out lowering protections for Japanese farmers in exchange for lifting the 25% tariff on autos, Bloomberg reported.

He also said Tokyo has no plans to terminate a 2019 trade agreement reached during former President Donald Trump’s first term that cut tariffs on U.S. farm goods, Japanese machine tools, and other products. Ishiba said he would continue voicing “grave concern” over inconsistencies between the agreement and Trump’s latest auto tariffs, according to Reuters.

However, Ishiba said he would not rush to visit the United States in the coming days to reach a deal with Trump.

He also praised Trump’s participation in the first round of trade talks in Washington. “I’ve never seen a U.S. president show up right from the start of negotiations like that. It was way beyond my expectations,” Ishiba said.

“This means the situation is conducive to building a win-win relationship for both sides. It can become a model for the rest of the world,” he said. “We must discuss what we can do together for the world.”

Japan’s economic revitalization minister, Ryosei Akazawa — Ishiba’s top negotiator — described last week’s talks at the White House as “a good first step toward building trust.”

In preparation for the next round of negotiations, the Japanese government is reviewing Trump’s previous comments and U.S. demands and considering possible bargaining points, NHK reported. Akazawa said in a National Security Council meeting Tuesday that the final outcome should result in a package that is not detrimental to Japan, according to NHK.

A survey published Monday in the Asahi Shimbun showed approval for Ishiba’s cabinet at 30% and disapproval at 56%.

Meanwhile, Tetsuo Saito, chief of Komeito — the junior partner in Japan’s ruling coalition — began a three-day visit to China on Tuesday, hoping to deliver a letter from Ishiba to Chinese President Xi Jinping, Kyodo reported. Ishiba told NHK in an interview Sunday that the ongoing tariff escalations between the U.S. and China are “absolutely not ideal.”

Saito met with Liu Jianchao, head of the Chinese Communist Party’s international department, after arriving in Beijing. Saito expressed appreciation for the warm welcome, while Liu called for the Japanese and Chinese ruling parties to promote a mutually beneficial strategic relationship to help ensure world peace, stability and prosperity, according to the Japan Times.

Contact reporter Lu Zhenhua (zhenhualu@caixin.com)

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