Japan PM determined to protect national interests amid tariff stalemate

TOKYO: Japanese Prime Minister Shigeru Ishiba said on Wednesday (Jul 2) he was determined to protect his country's national interests as trade negotiations with the US struggled and President Donald Trump threatened even higher tariff rates on the Asian ally.

"Japan is different from other countries as we are the largest investor in the United States, creating jobs," Ishiba said in a public debate with opposition party leaders.

"With our basic focus being on investment rather than tariffs, we'll continue to protect our national interest," he said.

Trump on Tuesday cast doubt on a possible deal with Japan, indicating that he could impose a tariff of 30 or 35 per cent on imports from Japan - well above the 24 per cent rate he announced on Apr 2 and then paused until Jul 9.

Speaking to reporters aboard Air Force One, Trump said a trade deal with Japan was unlikely before the Jul 9 deadline, as he criticised Japan's reluctance to accept imports of US rice, as well as the imbalance in auto trade between the two countries.

"I'm not sure we're going to make a deal," Trump said. "I doubt it with Japan, they're very tough."

While Trump imposed a sweeping 10 per cent tariff on imports from most trading partners in April, he unveiled - then paused - higher rates on dozens of economies to allow room for negotiations.

This pause expires Jul 9, meaning the elevated rates are due to kick in next week if countries fail to reach agreements with Washington to avert them.

To date, only two pacts have been announced. One was a broad framework with Britain and the other a deal to temporarily lower steep tit-for-tat duties with China.

Trump said he was going to write a letter to Japan, asking them to "pay a 30 per cent, 35 per cent or whatever the number is that we determine" because of the "big trade deficit" with Tokyo.

"It's very unfair to the American people," he said.

Japan, a key US ally and its biggest investor, is subject to the same 10 per cent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.

Ryosei Akazawa, Tokyo's trade envoy, told Japanese reporters in Washington last month that some progress had been made during a fifth round of talks with the United States.

However, he added: "We've not been able to find a point of agreement yet".

Japanese broadcaster TV Asahi reported on Wednesday that Japan's tariff negotiator Ryosei Akazawa was organising his eighth visit to the United States for trade talks as early as this weekend.