Japanese Prime Minister Shigeru Ishiba reiterated his call to eliminate all prices in the current trade negotiations with the United States.
In a television Interview on SundayIshiba highlighted the mutual benefits of a zero-tail agreement, highlighting positive progress in discussions and its constructive relationship with US President Donald Trump.
Ishiba underlined a recent American trade agreement that reduced most prices on British car exports, but has left a basic rate of 10% in place and said Japan should seek to eliminate prices. He advanced this argument by noting that high import duties, in particular the 25% rate on Japanese automobile exports to the United States now, increase costs for American consumers and harm the American economy. Japan also faces a 24% reprisal rate on goods sent to the United States.
The Japanese automotive industry, an important part of the Japanese economy, was hardly affected by these prices. In recent discussions on prices, the Japanese commercial negotiator, Ryosei Akazawa, cited the example of a automotive company which undergoes $ 1 million losses for each hour due to the American price of 25% on automotive export, stressing the need for rapid progress in negotiations on prices
However, while Ishiba seems more inclined to a zero rate plan, President Donald Trump suggested maintaining the price of 10%.
Trump insists on maintaining a 10% basic price on Japanese products
In the talk show, Prime Minister Shigeru Ishiba also described their talks with the American government as “gradually meeting” and even qualified his relationship with President Trump as “surprising”.
In addition, he argued that Tokyo should target prices of 0% in their commercial agreement with Washington, arguing that high prices harm both Japanese manufacturers and American consumers. For example, he has cited that the country's automotive exports to the United States would decrease and increase cars prices if Trump administration imposed high import duties, which would be detrimental to both parties.
He also argued that his country is investing and creates jobs in the United States; Therefore, if their automotive industry was weakened, they could no longer contribute to American investments. According to the Automobile Japan Manufacturers Association, the country exported 1.37 million vehicles, or about $ 41 billion in the United States last year,
Ishiba also talked about the US-UK agreement, recognizing it as “a possible model” but sub-optimal.
The United States agreed on Thursday to reduce prices to 10% over 100,000 British luxury export units each year. While Ishiba recognized him as a favorable case for the United Kingdom, he thinks that Japan can and should pursue better conditions, preferably a 0%tariff agreement.
However, Trump argued that a 10% rate on imports would remain in force even after the finalization of commercial negotiations. He argued that exemptions could be taken into account if the business partners offer substantial concessions.
Japan will be subject to a 25% rate on its automobile exports to the United States if it cannot agree with the United States before July 8. The United States will also impose a 24% tax on other Japanese products.
Ishiba is cautious in reducing the country's consumption tax
Ishiba firmly believes that a zero-tail agreement would also increase the American economy. He commented: “For the benefit of the American economy, too, the prices should not be reduced?”
He also warned against the rapid reduction in Japanese consumption tax. He has encouraged prudence and prudence, claiming that the reduction in consumption tax can concern too much can harm the country's economy.
In addition, he called for alternative measures to help people in need instead of a blind tax reduction.
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