Japan seeks 8th round of tariffs talks in U.S. amid Trump impasse
With President Donald Trump appearing to harden his stance ahead of next Wednesday's deadline for his administration's 90-day pause on country-specific tariffs, Japan's last-ditch effort will hinge on whether Ryosei Akazawa can secure a deal that includes a reduced tariff rate on cars, the source said.
In rounds of talks since April, the United States has been reluctant to accept Tokyo's request to withdraw or reduce the additional 25 percent tariff on cars.
Amid the stalemate, Japan is seeking an extension of the tariff suspension deadline to allow talks to continue.
Trump, however, on Tuesday floated the idea of raising tariffs on imports from Japan to as high as 30 or 35 percent, while complaining about Japan's purchases of American rice and cars.
"I'm not sure we're going to make a deal. I doubt it," Trump told reporters aboard Air Force One, calling Japan "very tough" and "very spoiled."
The dispute over auto tariffs has been a key obstacle to a deal, with Washington also pressuring its Asian security ally to boost imports of U.S. farm products, including rice, cars and oil, to help reduce its large trade deficit.
In return, Japan has highlighted its contributions to the U.S. economy and proposed a package deal that includes increased investment in the United States and cooperation on economic security, the source said.
Without an extension to the 90-day pause on part of the so-called reciprocal tariffs, Japan will face an additional 14 percent country-specific tariff on top of the 10 percent baseline duty the United States has imposed on imports from all countries.
Japanese Prime Minister Shigeru Ishiba is aiming to make progress in the tariff talks as campaigning for the House of Councillors election kicked off Thursday.
The Wall Street Journal reported earlier this week that the United States warned Japanese officials during talks in late May that it might demand a cap on the number of vehicles Japan could export to the United States -- a policy known as a voluntary export restriction, citing people familiar with the matter.
But Japanese officials held firm, telling their U.S. counterparts they would not accept any deal that preserves Trump's 25 percent automotive tariff, resulting in a deadlock in the negotiations, the U.S. newspaper said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
an hour ago
- Japan Today
In U.S. capital, Trump tariffs bite into restaurant profits
John Filkins, corporate beverage director at Clyde's Restaurant Group, said businesses are having to pass on some cost hikes to customers By Beiyi SEOW Brazilian coffee beans, French champagne and Chinese teas -- drinks are a profit driver for U.S. restaurants, but higher import costs have eaten into margins and fed into consumer prices in the three months since President Donald Trump unveiled sweeping global tariffs. A stone's throw from the White House, a restaurant group that takes pride in dishing up fresh local meat and produce has found itself having to raise prices on its menus. "The reality is, we have to pass along some of those to our guests," said John Filkins, corporate beverage director at Clyde's Restaurant Group. "Could be anywhere from 50 cents to $1 on certain wines by the glass, or spirits, or some of our food menu items." "We've seen huge increases in coffee and in teas, and we're beginning to see some of those increases in food, as well as paper products coming on through as well," he added. Clyde's, which opened in the 1960s in Washington, has more than a dozen restaurants in and around the U.S. capital. One of them is The Hamilton in downtown Washington, where drinks prices have ticked up. While management has tried to limit increases, Filkins said this has been tough. Businesses have encountered snarled supply chains and higher costs since Trump imposed fresh tariffs after returning to the presidency in January. In April, the president unleashed his widest-ranging salvo, a 10 percent duty on imports from most trading partners. This is expected to surge to higher levels for dozens of economies. Leaders like Filkins are eyeing a deadline next Wednesday when the steeper tariffs are due to kick in. These are customized to each partner, with the level for European Union products rising to 20 percent and that for Japanese goods jumping to 24 percent unless they strike deals to avert or lower the rates. Filkins warned that the longer tariffs remain in place, the fewer small, independent distributors, importers and restaurants there might be. "The hope is we don't see tariffs to the extent where we're seeing them any longer," he added. "Restaurants are, at the end of the day, typically low cash, low margin." A typical outfit probably runs "in the single digits in terms of profit margin," he noted. This means that cutting out 10 percent to 15 percent of their profit for wine by the glass, for example, could prove a significant blow. Clyde's sources coffee beans from places like Brazil and Indonesia for its blends, while getting teas from India and China. "Over the course of the last probably six months, we've seen about a 20 to 30 percent increase of that cost," Filkins said. This is partly because suppliers and distributors are not only paying the 10 percent tariff but forking out more due to exchange rates. Imports from China face a 30 percent tariff currently even though Washington and Beijing have temporarily lowered tit-for-tat levies on each other's goods. Without a deal, products from Indonesia face a 32 percent duty come Wednesday, and the rate for India spikes to 26 percent. "For liquor, beer and wine, most of the wine we import comes from the EU," Filkins said, noting the impact is biggest on products from France, Italy, Spain and Portugal so far. Yet, his company is trying to hold off passing on additional costs entirely. "Consumers are not comfortable spending more in the current climate," said Filkins. The world's biggest economy has fared well after the COVID-19 pandemic, helped by a solid labor market that allowed consumers to keep spending. But economic growth has slowed alongside hiring. Economists are monitoring to see if tariffs feed more broadly into inflation this summer, and households become more selective with purchases. With Trump's approach of announcing, adjusting and halting tariffs roiling financial markets and fueling uncertainty -- forcing businesses to put investments on hold -- Filkins hopes for an easing of levies. "It's hard for all of us to forecast what's going to happen in the next eight days," said Filkins. "We can't base all of our decisions on speculation." © 2025 AFP
Japan Today
an hour ago
- Japan Today
We're seeing noticeable shifts in consumer behavior and home dining habits.
Masashi Nakatsubo, general manager of Ito-Yokado's prepared foods division. Japanese consumers have made a shift away from high-priced rice to noodles, pasta and other cost-effective staples, the start of a possible change in diets in the country, retailers and industry experts say. © Asahi Shimbun
Japan Today
an hour ago
- Japan Today
U.S.-brand car sales lag in Japan, highlighting lack of demand
Just 7.8 percent of imported cars sold in Japan from January to June were from U.S.-branded automakers, industry data showed Friday, demonstrating the weak domestic demand for American-designed vehicles. Only 9,517 U.S.-branded vehicles were sold in Japan in the period, undercutting U.S. President Donald Trump's claim that more Japanese should be buying American imports to address his nation's trade deficit. Of the 121,243 units sold in the six-month period, Jeep -- owned by Netherlands-based multinational Stellantis NV -- was the best-selling U.S.-brand at 4,333 units, followed by General Motors Co's Chevrolet and Cadillac at 283 and 185, respectively, the Japan Automobile Importers Association said. In contrast, German brand Mercedes-Benz alone sold 25,015 vehicles in the period, with 90.4 percent of the cars imported to Japan coming from European manufacturers. Tesla Inc of the United States does not disclose sales by country, but takes up almost all of the "others" category at 4,589 units, an association official said. The EV maker's imports were included in the U.S. figure. Despite their dire position, demand for American brands is growing, rising 17.2 percent from a year earlier, reflecting the popularity of new Cadillac and Jeep EVs, the association official said. Japan's imports of U.S. cars have been a focus in the ongoing negotiations over Trump's tariffs, with the president expressing dissatisfaction that so few U.S. cars are seen on Japanese roads. He has blamed Japanese nontariff barriers, such as differences in safety tests, for the situation. Japan, which does not impose tariffs on imported cars, says its rules and standards are in line with United Nations regulations, and that it does not implement particularly strict rules on such vehicles. Auto analysts say Japanese buyers are not attracted to the types of vehicle typically offered by American automakers, such as large pick-up trucks, with domestic consumers preferring smaller vehicles due to Japan's narrow roads. Prime Minister Shigeru Ishiba also said in parliament earlier this year that foreign automakers need to be mindful of Japanese consumers' preference for right-hand drive, fuel-efficient vehicles. "Foreign automakers have to produce cars that suit Japanese consumers and that is up to American companies," Ishiba said, adding that limited dealer networks are also a crucial factor contributing to aversion to U.S. brands. Foreign carmaker officials in Japan agree with Ishiba's assessment, with some stressing the key to expansion is to study and respond to domestic preferences and also to engage continuously with buyers through dealerships. "Our strength is accessibility with a network of 200 stores nationwide, allowing people in Japan to casually visit and experience (our cars) hands-on," said Takeshi Sawamura, senior manager at Volkswagen Group Japan K.K. "Japan's regulations are sometimes noted as nontariff barriers but the rules are moving toward" the global standard, Sawamura said. "What matters is whether we can produce cars that suit the Japanese market." Jin Narita, head of Stellantis Japan Ltd -- which owns Italian, French and U.S. brands including Jeep, Alfa Romeo, Peugeot and Citroen -- said the company prioritizes having a wide range of products that are attractive to many Japanese drivers. "Stellantis cars are positioned between domestic makers' models and premium models. We offer unique models, such as Jeep that appeal" to consumers' adventurous side, Narita said. © KYODO
