Kristina Roberts
Japan’s Prime Minister, Shigeru Ishiba, has once again asked the United States to completely remove all tariffs on trade between the two countries. He believes this will help both nations and make goods cheaper for American buyers.
Ishiba’s Statement on Trade Talks
On Sunday, May 11, 2025, Prime Minister Ishiba spoke on a Fuji TV morning show. He said, “discussions have gradually come together” between Japan and the US. He also mentioned that his relationship with US President Donald Trump is “surprisingly good.”
However, Ishiba pointed out that the recent trade deal between the US and the UK is not perfect. The US agreed to lower high taxes on British car exports but kept a 10% tariff. Ishiba said this deal is “one model” but Japan should aim for “0 per cent tariffs.”
Why Removing Tariffs Helps the US
The Prime Minister explained that high taxes on Japanese cars make them more expensive for American buyers. He said, “for the sake of the American economy as well, shouldn’t those tariffs be lowered?”
Right now, Japan pays a 25% tax on cars sold in the US. The US also charges a 24% tax on some Japanese goods. Ishiba wants these taxes removed completely to make trade fair and easy.
Trump’s View on Tariffs
President Trump recently said the US will keep a 10% tax on imports even after trade deals. However, he added that some countries might get exemptions if they offer good trade terms.
Japan’s Domestic Economic Plans
Besides trade talks, Prime Minister Ishiba also spoke about Japan’s economy. Some people want the government to reduce the consumption tax (a tax on goods and services). But Ishiba is careful about this idea.
He said, “If we suddenly lower the consumption tax, what happens to the country’s finances?” Instead, he wants to find other ways to help people who are struggling.
Prime Minister Ishiba is pushing for a tariff-free trade deal with the US. He believes this will benefit both countries and help American consumers. While discussions are going well, the final decision depends on negotiations between Japan and the US.
Impact on Japanese Automakers
If the US agrees to remove tariffs, Japanese car companies like Toyota and Honda could sell more vehicles in America at lower prices. This would help them compete better with American car brands. Many Japanese businesses are hopeful because cheaper exports mean higher profits and more jobs in Japan. Prime Minister Ishiba wants this deal to support Japan’s economy while also giving American buyers more choices.
Public Reaction in Japan and the US
Some people in Japan support Ishiba’s push for zero tariffs, saying it will boost trade and strengthen ties with the US. However, others worry that completely removing taxes might hurt small Japanese businesses. In America, opinions are mixed—some lawmakers support free trade, while others want to protect US industries with tariffs. The discussion continues as both countries work toward a fair agreement.
