Japan stands firm: No significant concessions in Trump tariff talks
On Monday, Japanese Prime Minister Shigeru Ishiba told parliament that one should not expect Tokyo to make "major concessions" to agree with the U.S. on Donald Trump's tariffs. The yen exchange rate is likely under scrutiny, which Washington believes is undervalued.
As part of the reciprocal tariffs that Donald Trump announced and then suspended for 90 days, imports from Japan were subject to a 24% tax. However, the 10% tariffs on almost all imported goods to the U.S. remain, along with the 25% charges on automobiles, particularly affecting the Japanese economy.
The Japanese delegation will begin tariff negotiations with the Trump administration on Thursday. As reported by Reuters, Prime Minister Shigeru Ishiba dispelled any expectations of quickly reaching a deal with Washington on Monday.
"I'm not of the view that we should make big concessions for the sake of wrapping up negotiations quickly," said the head of the Japanese government. "In negotiating with the United States, we need to understand what's behind Trump's argument both in terms of the logic and the emotional elements behind his views," he emphasized.
Yen exchange rate under scrutiny
Reuters reports that one of the issues to be discussed is the yen exchange rate against the dollar. Washington believes Japan is undervaluing its currency to gain an advantage in exports to the U.S.
"Any discussion on the yen may spill over to monetary policy and complicate the BOJ's decision on how soon, and by how much, it should raise still-low interest rates," Reuters writes.
The board of Japan's central bank previously expressed concern about the' negative impact of tariffs on the country's economy. According to sources from the Kyodo agency, it will have to be particularly cautious when considering the timing of an interest rate hike.
Cars accounted for over 28% of Japan's total exports to the U.S. in 2024, reaching nearly 40 billion dollars, according to data from the Japanese government.
