Japanese Prime Minister Shigeru Ishiba has drawn a hard line in trade negotiations with the United States, vowing not to "easily compromise" on President Donald Trump's threat to impose tariffs of up to 35% on Japanese goods. With a critical July 9 deadline approaching, tensions escalate as both nations grapple over what Trump calls an "unfair" bilateral trade relationship.
"We will not easily compromise. That's why it is taking time and why it is tough," Ishiba stated during a televised interview Sunday, emphasizing Japan's status as the largest foreign investor in the U.S. economy. "We are allies, but we have to say what we have to say."
The standoff centers on Trump's demands for increased U.S. auto and rice exports to Japan, with the president threatening punitive tariffs if no agreement is reached by Wednesday. While a 10% tariff currently applies to most trading partners, the administration has warned of steeper rates for countries failing to negotiate exemptions.
Tokyo's trade envoy Ryosei Akazawa has held urgent talks with U.S. Commerce Secretary Howard Lutnick this week, as officials race to avert economic disruption. Ishiba questioned the basis of Trump's claims, stating: "What is unfair? How is it unfair? We need to examine each one [of the U.S. claims]."
Analysts suggest Japan's $490 billion in U.S. investments and 900,000 American jobs created through Japanese companies could become leverage in negotiations. As global markets watch closely, Ishiba confirmed Japan is "preparing to deal with all kinds of situations" regarding the pending tariff decision.
