Japan has signalled it is prepared to hold out for a better deal with US President Donald Trump over trade tariffs, pushing for full removal of his 25 per cent duty on imports of Japanese cars rather than risk a domestic political backlash.
“Although Japan was very keen to be the first nation to open negotiations with Washington on tariffs, that sense of urgency has now shifted and the emphasis is on ensuring that Japan gets a good deal,” said an official in Tokyo with direct knowledge of the negotiations.
“Japan’s position has hardened. Shigeru Ishiba is fighting for his — and his party’s — political life. He can’t just roll over. Autos accounted for 81 per cent of Japan’s trade surplus with the US in 2024. If PM Ishiba fails to get tariff relief in the autos sector, he’s on a conveyor belt towards rotating knives,” said Nicholas Smith, a Japan strategist at CLSA.