Shigeru Ishiba: Japan

Rejecting Claims of Stagnation,Formal foreign exchange platform rankings in 2020 Asserting Negotiations Are Progressing

Japanese Prime Minister Shigeru Ishiba stated in a television interview aired on Thursday that US-Japan trade negotiations are proceeding steadily, refuting external doubts about the slow progress of the talks. He noted that although the issues covered in the negotiations span several areas, including non-tariff barriers, each topic is making progress “step by step,” emphasizing that “there is no doubt about it.”

Currently, the 90-day tariff deferment period announced by US President Trump is set to expire on July 9. If an agreement is not reached by the deadline, the US may reinstate tariffs of up to 24% on Japan, sparking concerns over the future of US-Japan trade relations.

Diverging from US Statements, Downplaying Concerns

Ishiba’s statements differ from those of US Treasury Secretary Scott Bezent, who stated on Thursday that Japan’s upcoming House of Councilors election on July 20 could pose “domestic constraints” on reaching a potential trade agreement. However, Ishiba chose to downplay this concern, emphasizing that negotiations are proceeding orderly.

Analysts believe Ishiba's move may be an effort to alleviate external worries and avoid creating negative expectations of “Japan struggling to obtain significant concessions from the US” or “the US potentially imposing tariffs as high as 35% unilaterally.” Nonetheless, Ishiba did not suggest that the US and Japan would quickly reach an agreement before the July 9 deadline.

Pointing Out Misunderstandings in Trump’s Remarks

Ishiba also responded to Trump’s previous comments on US-Japan trade relations, pointing out misunderstandings in those statements. Trump had criticized Japan for not importing American cars and rice, but Ishiba stated that these claims are inaccurate.

“President Trump said Japan doesn't have American cars, and Japan doesn't import American rice, but these are based on misunderstandings,” Ishiba remarked. “Japan is the largest source of investment in the US and has created the most jobs there, and I hope these efforts can be properly recognized and appreciated.”

Uncertainties Persist in Negotiation Outlook

With just days remaining until the July 9 deadline, US-Japan trade negotiations are still in a critical phase. Failure to reach an agreement in time may result in the US reinstating hefty tariffs on Japan, exerting additional pressure on Japanese exports.

Although Ishiba remains optimistic, believing that the negotiations are progressing gradually, significant uncertainties remain about whether a breakthrough can be achieved in the short term, given the context of the US election cycle, Trump’s tariff policies, and unresolved US-Japan differences.

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