Shigeru Ishiba, Japan's Prime Minister, took a tough stance on the United States' plan to impose a 25% tariff, stating, “I will not compromise easily.”
On the 8th, Prime Minister Ishiba met with reporters at the Prime Minister's Office, saying, “The Japanese government will avoid easy compromises,” and “We are negotiating with full force, demanding what needs to be demanded and keeping what must be kept.”
He continued, “We will negotiate to achieve an agreement that protects national interests while aiming for a new deadline of August 1,” adding, “I will do my utmost to mitigate the impact on domestic industries and employment.”
U.S. President Donald Trump sent a letter the day before to 14 countries, including South Korea and Japan, regarding reciprocal tariffs between 25% and 40%. The tariff rate on Japan rose by 1 percentage point from the previous 24% to 25%.
The deadline for the imposition of the tariff has also been extended from July 9 to August 1.
Prime Minister Ishiba explained, “The tariff rate can change depending on the response,” indicating that there is room for negotiation on the tariff rate. However, he assessed the increase in the tariff rate as “really regrettable.”
Japan is 20 days away from the House of Councilors election, which corresponds to the U.S. Senate. Due to the timing, which can stimulate public sentiment, it is difficult for Japan to make significant concessions to the United States.
Due to this, stronger voices within the ruling party, the Liberal Democratic Party, have emerged regarding the tariff negotiations.
Itsunori Onodera, chairman of the Liberal Democratic Party's Political Affairs Research Council, commented on this tariff rate notification, saying it was “unacceptable” and that “to notify allies with a letter is a very rude act, and I feel a strong anger.”
The opposition raised the issue of responsibility. Yoshihiko Noda, head of the Constitutional Democratic Party, pointed out, “There is also responsibility on Prime Minister Ishiba's part,” asserting, “The regime must be changed.”
The business community expressed concern. Yoshinobu Tsutsui, president of Keidanren, stated, “It will have a very severe impact,” and expressed worries that it will broadly affect Japanese corporations' investment strategies and profitability.
Last year, exports to the U.S. amounted to approximately 21.3 trillion yen, accounting for 20% of Japan's total exports. The Nihon Keizai Shimbun reported that if the 25% tariff were imposed as scheduled, Japan's real GDP would fall by 0.4 percentage points, and the number of bankrupt corporations would significantly increase.
Chief Cabinet Secretary Yoshimasa Hayashi said during a regular briefing that he feels “very regrettable” about the U.S. tax increase, adding, “In accordance with Prime Minister Ishiba's instructions, we will continue Japan-U.S. negotiations to protect national interests while actively seeking the possibility of an agreement.”
Prime Minister Ishiba also held a meeting of the Comprehensive Policy Headquarters on U.S. tariff measures, composed of ministers, on that day.