Japan will keep pressing the US to cut tariffs on cars and auto parts to 15% as promised in a trade deal and work to ensure the nation’s automakers remain competitive against their rivals, according to the nation’s chief trade negotiator.
“We will continue to urge the US side to promptly take measures to implement the recent agreement, including the reduction of tariffs on cars and car parts,” Ryosei Akazawa said on Friday in Tokyo. “We want the US to fulfil its commitments, and Japan will also do what we promised to do.”
Akazawa spoke hours after US President Donald Trump issued an executive order to cut so-called reciprocal tariffs on imports from many nations. The rate for Japan will be lowered to 15% in a week, compared with a threatened 25%.
But it remains unclear when the car tariffs will be lowered to 15% from a total of 27.5%, including a pre-existing 2.5% levy. The car duty strikes at the heart of the Japanese economy as the industry accounts for the biggest component of the nation’s exports to the US, a key trade and security partner.
“We aim to continue ensuring that our country’s automotive industry can compete under conditions that are advantageous or at least not disadvantageous,” Akazawa said. “After all, a 15% tariff remains in place. We can’t simply say that it is good because we are not at a disadvantage compared to other competitors in terms of conditions.”
Akazawa sealed a surprise trade deal with Trump on July 22 in the US during his eighth visit to Washington since April. On Friday, he said Japan needs to continue to monitor how the US tariffs will affect its economy at a critical juncture in global trade.
“We are in a situation where a hegemonic nation is trying to change everything from diplomatic rules to the world order,” Akazawa said. “I believe that both the economy and the geopolitical situation are being placed in a turbulent situation. Navigating through this with precision is a challenging task that can’t be accomplished with a simple solution.”
Source: theedgemalaysia