Why a US-Japan tariff deal remains elusiveーNHK WORLD-JAPAN NEWS
Now, let’s bring in Asaki Dyska from our bis desk to break down what we should expect from these talks. Daisy, the UK and China have already been able to reach agreements with the US in their talks. Can Japan’s delegation pull that off this time? I would not expect things to move that quickly. Japan has actually been negotiating these US tariffs longer than many other countries. We started back in April and have had multiple meetings but so far there has been no major progress. So what’s taking so long? It comes down to the auto auto industry. Automobiles were Japan’s top export to the US last year. They accounted for more than 28% of the total value of the goods list there. Auto parts came in second at almost 6%. Right now that industry is dealing 25% additional US tariffs. Many automakers have already forecasted huge declines declines in profits for this fiscal year. It’s a massive hit to the Japanese economy. So Japan wants a really good deal. So Duke, what would a really good deal for Japan look like? Well, you mentioned the UK. It was able to get the US to lower its auto tariffs to 10% on up to 100,000 British units per year. For Japan, I don’t see I don’t think that’s good enough. It’s seeking a package package agreement. It would address both the auto industry levies as well as Trump’s so-called reciprocal tariffs of 24% which are currently on post. But a big deal like that takes a takes time. Another complication is non-tar trade barriers. The US claims Japanese safety standards are shutting American car makers out of the Japan market. So Washington is asking Tokyo to review them. Japanese government associates tell us this was discussed during working level rebel talks in Washington this week. They exchanged views on what changes could make it easier for Japan to import US cards. So we have no idea how long this will all take. All we can say is at least both sides are speaking. Right. But is there anything Japan could do to move things along? Well, one thing we know about Trump is he wants everyone to know he scored the amazing deal. This could play into Japan’s strategy. The Trump administration’s main priority in its talks with Japan is reducing the trade deficit. Japanese government sources say they plan to propose more investment and importing of American soybeans and corn. They may also discuss a big potential Japanese investment in a energy extraction in Arasa. We should say Japan Zakazawa is not expected to meet US territory secretary Scott Bent this time but he’s making arrangements for face-to-face talks as soon as possible. All right, thanks for that Duke. That was daisy from our biz
Japan’s top trade negotiator is back in Washington, but don’t expect an agreement just yet.
NHK WORLD Senior Business Correspondent Esaki Daisuke tells us why.
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