Japanese Prime Minister Shigeru Ishiba emphasized his commitment to eliminating all tariffs in ongoing trade negotiations with the United States. Speaking on Fuji Television, Ishiba stated that bilateral discussions are progressing and described Japan’s relationship with U.S. President Donald Trump as “surprisingly good.”
Ishiba referenced the recent U.S.-UK agreement, which reduced tariffs on British car exports while maintaining a 10% baseline tariff. While acknowledging it as “one model,” he insisted that Japan should pursue complete tariff elimination. “High auto import levies drive up costs for U.S. consumers,” Ishiba argued. “For the sake of the American economy, those tariffs should be lowered.”
Japan currently faces a 25% tariff on auto exports to the U.S., alongside a 24% levy on other goods. Ishiba’s comments come in response to President Trump’s statement that a 10% tariff will remain standard in U.S. trade policy, with possible exemptions for countries offering substantial concessions.
The Prime Minister also addressed domestic fiscal concerns, particularly the potential reduction of Japan’s consumption tax. While some have suggested cutting the tax to support economic growth, Ishiba cautioned against hasty decisions that could harm national finances. “We must consider alternative ways to support those truly in need,” he said, signaling a preference for targeted relief over sweeping tax cuts.
As Japan navigates critical trade talks and domestic fiscal challenges, Ishiba’s push for zero tariffs and cautious stance on tax reform highlight the government’s balancing act between international diplomacy and internal economic stability.