Time is running out for Japan!
Less than 10 days before the new tariffs are set to take effect, US President Donald Trump reiterated his stance on maintaining a 25% tariff on Japanese vehicles on the grounds of a significant trade imbalance between the two countries.
Trump described the situation as unfair since Japan does not import cars from the US, but instead ships millions of vehicles to the American market. He also hinted at imposing the tariffs unilaterally through an official notice to Tokyo.
The statement was made despite negotiations having been held between Japan’s chief negotiator, Ryosei Akazawa, and US Commerce Secretary Howard Lutnick. However, face-to-face meetings and two follow-up phone conversations have shown no progress.
In a statement on social media, Akazawa stated that bilateral negotiations are at a critical stage and that Japan will continue to discuss fairly and seriously.
Tokyo has also defended its automotive industry's contribution to the US economy, including more than $60 billion in investment and the creation of 2.3 million jobs, arguing that the 25% tariff is unjustified.
For now, the tariffs remain in place along with a 50% duty on steel and aluminium, while the current 10% across-the-board tariff is set to rise to 24% if no deal is reached by July 9.
Analysts have warned that failure to reach an agreement could push Japan to the brink of a technical recession after its economy contracted in the first quarter of this year.
Trump's statements so far have signaled that Japan is far from achieving any tariff relief or exemption.
