Japan’s Prime Minister Shigeru Ishiba expressed his views on Sunday (April 20) regarding the ongoing Japan-US trade negotiations. He emphasized the hope that the current tariff negotiations between Japan and the US could serve as a model for negotiations between the US and other countries.
In an appearance on a talk show program on Japan Broadcasting Corporation (NHK) on Sunday, Ishiba made the above remarks. He stated that he believes both negotiating parties need a satisfactory outcome, saying, “We hope to set an example for the world by taking the necessary time for negotiations.”
He added, “Results that benefit one side while harming the other will not serve as a model for other countries.”
Regarding the US imposing taxes on imported cars from Japan, Ishiba mentioned that President Trump told him over the phone that there are few American cars on the roads in Japan. He speculated that this issue deeply troubles the US.
The Trump administration has accused Japan’s safety regulations in the automotive market of being a non-tariff barrier. Ishiba did not rule out relaxing non-tariff barriers for American cars during the program on Sunday. He mentioned that differences exist between transportation and safety regulations in the US and Japan, which must be taken into consideration. The Japanese government will carefully review Japan’s safety standards to ensure that “we are not told that our safety regulations are unfair.”
According to Nikkei Asia, as part of the tariff negotiations with the US, Japan is considering easing import car safety regulations.
Ishiba stated that reducing the trade deficit with the US and other countries is Trump’s top priority. Japan may purchase more American energy. He will decide on the final solution in-depth with Trump and strive to achieve the best results. Ishiba mentioned that he will visit the US at an appropriate time and make every effort to secure the best outcome.
President Trump stated last Wednesday (April 16) after attending the first round of US-Japan trade talks that there had been “significant progress.”
Some analysts believe that Japan could leverage its massive holdings of US Treasury bonds as a bargaining chip in bilateral trade negotiations. According to the US Treasury data, Japan holds $1.079 trillion in US government debt, making it the largest holder of US Treasury bonds outside the US. However, Japanese Finance Minister Katsunobu Kato and the policy chief of Japan’s ruling party, Itsunori Onodera, have both stated that Japan will not threaten the US by selling off US Treasury bonds.
When asked whether Japan would bring up its holdings of US debt during the talks, Ishiba stated, “These negotiations are based on mutual trust, global economic stability, and the stability of both countries’ economies.”
Onodera also stated a few days ago that as an ally of the US, the Japanese government would not consider using US Treasury bonds for retaliation in negotiations.