Akazawa, Lutnick agree to continue tariff talks
Japanese economic revitalisation minister Ryosei Akazawa and US Commerce Secretary Howard Lutnick agreed in telephone talks on Tuesday to vigorously continue tariff negotiations after US President Donald Trump announced a 25 % reciprocal tariff on Japanese goods.
The negotiations are now expected to focus on the additional US tariff on automobiles, a key Japanese export. Japan has repeatedly called for a review of the auto tariff, but the US side has been reluctant to do so as it aims to reduce its trade deficit.
Japan is poised to continue to seek the United States' understanding by proposing measures such as rectifying nontariff barriers with which Washington has taken issue, as well as expanding imports of US goods.
At a press conference on Tuesday, Akazawa suggested that Japan has no new proposals to break the impasse now, saying, "Everything necessary is on the table."
The United States has already implemented additional tariffs of 25 % on automobiles and 50 % on steel and aluminium. If it raises the reciprocal tariff on Japan from the current 10 % to 25 %, as announced by Trump, it could impact a wide range of Japanese exports.
Daiwa Institute of Research Ltd. estimates that the US auto and other tariffs could push down Japan's real gross domestic product by 1.3 % in 2025 and 3.7 % in 2029.
[Copyright The Jiji Press, Ltd.]
