Japan on Friday reiterated that it seeks full removal — not just a reduction — of US tariffs, following a new trade deal between the UK and the US.
Tokyo is aiming for the complete elimination of 24% “reciprocal” tariffs, currently under a 90-day reprieve, as well as an additional 25% tariff on cars and separate 25% duties on steel and aluminum, said Ryosei Akazawa, Japan’s top government negotiator, according to the Mainichi Shimbun newspaper.
“Our position remains the same that (Japan) will urge (the US) to review the series of tariff measures,” Akazawa said.
A third round of negotiations is expected to take place in mid-May or later.
Industry Minister Yoji Muto said Tokyo continues to seek the elimination of the 25% tariff on cars, adding that Japan hopes to “examine the contents of the US-Britain agreement carefully and determine what can serve as a reference for us.”
Trump on Thursday agreed to remove the 25% tariff on UK steel and aluminum and to reduce the tariff on most car exports from 27.5% to 10%.
– No plan to reduce taxes
Japan’s Prime Minister Shigeru Ishiba reportedly has no plans to cut the consumption tax despite rising inflation and the impact of US tariffs, the Kyodo news agency reported, citing sources familiar with the matter.
Ishiba has already notified government officials that a tax cut would constrain the government’s fiscal flexibility, according to the news agency.
Chief Cabinet Secretary Yoshimasa Hayashi said the tax, which is 8% on food and beverages as well as 10% on other goods, is vital for Japan’s debt-laden finances, making a reduction not “appropriate.”