Japan Unwilling to Settle Unless Auto, Steel Tariffs Part of Deal
Both the Japanese government and Japanese reporters' coverage of Japan's more than two-hour talk with the U.S. trade representative, commerce secretary and treasury secretary describe politicians who are not in a hurry to settle to avoid 24% tariffs under the reciprocal tariff plan that is scheduled to take effect in early July.
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Rather, Nikkei reporters wrote, "The Japanese strongly objected to limiting the scope of talks to reciprocal tariffs, and want the auto and steel tariffs on the table."
The top Japanese export to the U.S. is cars, about $40 billion annually, and motor vehicle parts are the second-most-valuable export to the U.S., at nearly $7 billion; both categories are tariffed at 25% under a national security rationale. The 25% tariffs on steel have been in place since 2018, and the U.S. is no longer one of the top 10 destinations for Japanese steel.
At a press conference in Tokyo on May 2 about the meeting, Japanese Prime Minister Shigeru Ishiba said, according to an unofficial translation: "During the discussion, the United States stated its traditional thinking, and our position on the elimination of tariff measures has not changed at all. As for the content, we would like to discuss in more detail in the future the expansion of trade, non-tariff measures, economic security, and other such cooperation. I cannot go into the details of the content, but a constructive and in-depth discussion was held. However, we have not yet reached a point of agreement."
The prime minister didn't say that Japan intends to reach an agreement ahead of the end of the 90-day pause for reciprocal tariffs, in early July. "It is true that the sooner, the better, but, of course, the content of the agreement must not be such that it undermines our national interests by prioritizing speed," he said.
A readout of the meeting from the U.S. government called the talks "frank and constructive," and said that U.S. Trade Representative Jamieson Greer highlighted both Japan's tariffs and non-tariff measures. Working-level consultations will build upon the meeting, both sides said.