Japanese Prime Minister Shigeru Ishiba has reiterated his government’s ambition to eliminate all tariffs in ongoing trade negotiations with the United States, calling existing import levies counterproductive for both economies.
Speaking on Fuji Television on Sunday, Ishiba said that trade discussions between Tokyo and Washington had “gradually come together,” and described his relationship with US President Donald Trump as “surprisingly good”.
Despite praising recent progress, Ishiba pointed to Washington’s agreement with London—announced Thursday—as only a partial model for future trade arrangements. That deal reduced duties on British car exports but maintained a baseline 10% tariff.
“We should aim for 0% tariffs,” Ishiba said, adding that high auto import levies make cars more expensive for American consumers, and that “for the sake of the American economy as well, shouldn’t those tariffs be lowered?”
Japan’s auto industry remains a critical pillar of its economy, and current US tariffs of 25% on Japanese vehicle imports have been a key point of contention. Japan, in turn, imposes a 24% reciprocal levy on certain US goods.
Trump stated on Friday that the US would retain a default 10% tariff on imports even after finalising trade deals, although he left room for exemptions in exchange for “significant trade terms”.
The back-and-forth underscores the strategic economic balancing act Tokyo must perform as it negotiates a more favourable framework with a protectionist US administration while shielding vital sectors from retaliatory measures.
On domestic matters, Ishiba also addressed speculation over a potential cut to Japan’s consumption tax, which currently stands at 10%.
“If we suddenly lower the consumption tax, what happens to the country’s finances?” he asked. “We have to think if there aren’t other ways that we can help those who are truly in need.”
While supportive of relief measures for vulnerable households, the Prime Minister indicated fiscal prudence must guide any tax reform decisions.
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