Concerns Loom Over Japan-U.S. Tariff Talks After Trump Comment; Ishiba Unable to Make Certain Concessions Ahead of Upper House Election

The Yomiuri Shimbun

18:02 JST, July 3, 2025

Concerns about trade talks possibly stalling is spreading within the Japanese government following U.S. President Donald Trump’s comment on Tuesday that cast doubt on reaching an agreement on tariffs.

With the July 9 deadline for the end of the suspension of the additional portion of “reciprocal tariffs” approaching, some have begun making moves on the assumption that an agreement will not be reached anytime soon.

Prime Minister Shigeru Ishiba spoke to the press at the Prime Minister’s Office on Wednesday and stressed his intention to continue negotiations, saying: “I will not comment on every one of [Trump’s] remarks. Japan has been engaged in serious negotiations with our national interest at stake.”

Economic revitalization minister Ryosei Akazawa also said on the day, “The negotiations are not supposed to be straightforward and easy, as the national interests of both countries are at stake.”

“We hope to reach an agreement while firmly defending our national interest,” Akazawa added.

The two countries held administrative-level talks on Monday that were followed by a series of talks over the phone and through other means, according to Akazawa.

As Japan’s chief tariff negotiator, Akazawa has so far held seven ministerial-level talks with the U.S. side. However, disagreements have remained regarding the United States imposing tariffs on Japanese automobiles.

Some within the Japanese government said Trump’s remark “severely hurt negotiations.” Others consider it as a “bluff to get Japan to make more concessions” and think the government should not be swayed by it.

With the House of Councillors election set to be held July 20, Ishiba has been unable to find something to negotiate with that is appealing for Trump. Ishiba cannot make concessions to increase rice imports from the United States — something that is strongly opposed by Japanese rice producers — or on automobile tariffs, which is a key industry in Japan.

If negotiations do not progress, it is possible that the additional 14% will be imposed after July 9. Furthermore, the additional 25% tariff imposed on automobiles since April will further impact the industry. The government has begun to consider possible measures to deal with the situation.

“I intend to protect industries in Japan through such measures as expanding domestic demand and export destinations,” Ishiba said, regarding possible support measures if fewer automobiles are exported to the United States, at a debate between party leaders on Wednesday.

‘No point in getting nervous’

“There is no point in getting nervous every time Trump makes a comment,” said Ken Kobayashi, chairperson of the Japan Chamber of Commerce and Industry, at a press conference on Wednesday. “I will remain calm.”

He also said the impact on the Japanese economy will be big if the tariff rates are raised.

“We might just have to bear with certain things to reach an agreement,” Kobayashi said.