Japanese Prime Minister Shigeru Ishiba will hold urgent talks with U.S. President Donald Trump next week to address new tariffs threatening bilateral trade ties. The move follows Japan’s unsuccessful bid for exemption from Washington’s sweeping tariff hikes announced Wednesday, which include a 24% levy on Japanese imports – higher than initially anticipated.
“I will talk logically about how much Japan will benefit [the United States],” Ishiba stated during a televised address, emphasizing plans to highlight Japan’s status as America’s largest foreign investor. The prime minister called the tariffs a “national crisis,” but ruled out retaliatory measures: “We will not go tit-for-tat.”
Economic Fallout Looms
Analysts warn the tariffs could slash Japan’s real GDP growth by 0.6% in 2025, compounding economic stagnation projected for 2024. In response, Tokyo announced plans to expand state-backed loans for small businesses and established a task force to assess sector-specific impacts.
Trade Minister Yoji Muto revealed last-minute appeals to U.S. Commerce Secretary Howard Lutnick failed to sway Trump’s decision. Disputes also flared over claims about Japan’s agricultural tariffs, with Agriculture Minister Taku Eto dismissing Trump’s “700% rice tariff” assertion as “illogical.”
With Japan contributing 770,000 metric tons of tariff-free rice imports annually under WTO agreements, officials question the accuracy of U.S. trade imbalance calculations driving the tariffs. The Daiwa Institute of Research cautions the measures risk destabilizing a key alliance while offering minimal economic benefit to Washington.
