TOKYO: Japanese Prime Minister Shigeru Ishiba reiterated on Sunday (May 11) that he will aim for the elimination of all tariffs in trade negotiations with the United States.
Speaking on a Fuji Television morning program, Ishiba said that “discussions have gradually come together” and that Tokyo’s relationship with US President Donald Trump is “surprisingly good”.
However, Ishiba said that Washington’s agreement with London, announced on Thursday, which lowers prohibitive duties on British car exports while keeping a baseline 10 per cent tariff in place, was “one model” for trade deals, “but we should aim for 0 per cent tariffs”.
Saying that high auto import levies would make cars more expensive for US consumers, Ishiba added, “for the sake of the American economy as well, shouldn’t those tariffs be lowered?”
Trump said on Friday that the US will maintain a baseline 10 per cent tariff on imports even after trade deals are struck, adding there could be exemptions when countries offer significant trade terms.
Currently, Japan faces a 25 per cent levy on economically crucial auto exports to the United States, and a reciprocal 24 per cent tariff on other Japanese goods.
In terms of supporting the domestic economy, Ishiba said that the government needs to think carefully about a mooted reduction in consumption tax.
“If we suddenly lower the consumption tax, what happens to the country’s finances?” he said.
“We have to think if there aren’t other ways that we can help those who are truly in need.”
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