Japan is considering proposing a joint response plan with the United States to counteract China in the context of the US-Japan tariff negotiations. This comes as China has restricted the export of 7 rare earth minerals and stopped purchasing liquefied natural gas (LNG) from the United States. Japan is exploring collaboration with the US in relevant supply chains and purchasing semiconductor products from the US to garner concessions from the American side on tariff measures.
According to a report by the Nikkei, Japan’s Minister of Economic Revitalization, Toshikazu Akazawa, departed for the United States on Thursday (June 5) to engage in tariff negotiations and is expected to participate in ministerial-level discussions to propose a joint response plan against China.
Japan has already held 4 ministerial-level negotiations with the United States regarding additional tariffs and has requested the US to reassess. A Japanese negotiator revealed, “During the 4th negotiation, we roughly grasped the demands of the US.”
The main focus is on ensuring the availability of essential materials for industrial activities. During a phone call between Japanese Prime Minister Shizuo Ishiba and US President Donald Trump in May, Trump directly requested Japan’s cooperation.
In retaliation against US tariff measures, China began restricting the export of 7 rare earth minerals in April. Some of these minerals are essential for producing high-performance magnets used in electric vehicles.
Japan excels in technology related to the processing, recycling, and reduction of usage of rare earth minerals. Japan plans to propose a plan to the US that offers relevant technology to assist in global rare earth mining. China also controls the export of graphite, gallium, and other critical minerals, and Japan is seeking collaboration with the US in these areas.
Furthermore, Japan is considering expanding its imports of LNG from the US. It is contemplating providing support for the development in Alaska or increased production in Louisiana and Texas.
In response to China imposing retaliatory tariffs on US LNG, there has been a significant decrease in the import of American LNG.
Japan is also considering purchasing semiconductor products from US companies, with a scale amounting to billions of US dollars, including products from the US semiconductor giant NVIDIA.
The US has restricted semiconductor exports to China to prevent China from developing cutting-edge technology and to curb China’s excessive expansion in artificial intelligence (AI) and military technology.
Based on economic and national security considerations, the US is strengthening its independent semiconductor production. Japan is considering providing the necessary equipment such as wafers for semiconductor manufacturing. Additionally, Japan plans to collaborate with the US in building icebreakers, which is seen as a response to China.
The trade imbalance in favor of Japan with the US has exceeded over 9 trillion yen in a year. Japan finds it challenging to narrow the trade deficit, which the US views as a concern, solely through its efforts. Japan hopes to contribute in tandem with the US to address inappropriate competition from China.
Japan is requesting the Trump administration to reconsider the additional tariffs on automobiles, auto parts, steel, aluminum, and equivalent tariffs. Depending on the content of the 5th round of US-Japan tariff negotiations, Japan will seek the possibility of reaching an agreement during a summit between Japanese and US leaders.
(Translated from Central News Agency)