Japan stands firm against US tariff pressure amidst yen debate
On Monday, Japanese Prime Minister Shigeru Ishiba told parliament that Tokyo should not be expected to make "major concessions" to reach an agreement with the US on Donald Trump's tariffs. The yen exchange rate is likely under scrutiny, which Washington believes is undervalued.
As part of the so-called reciprocal tariffs that Donald Trump announced and then suspended for 90 days, imports from Japan were subject to a tax of 24%. However, the 10% tariffs on almost all imported goods to the US remain, as well as the 25% charges on automobiles, which particularly affect the Japanese economy.
The Japanese delegation will begin tariff negotiations with the Trump administration on Thursday. On Monday, Prime Minister Shigeru Ishiba, as reported by Reuters, dispelled any illusions regarding the expectations of quickly coming to terms with Washington.
- I'm not of the view that we should make big concessions for the sake of wrapping up negotiations quickly - said the head of the Japanese government. - In negotiating with the United States, we need to understand what's behind Trump's argument both in terms of the logic and the emotional elements behind his views - he emphasized.
Yen exchange rate under scrutiny
Reuters writes that one of the issues to be discussed is the yen exchange rate against the dollar. Washington believes Japan is undervaluing its currency to gain an advantage in exports to the US.
"Any discussion on the yen may spill over to monetary policy and complicate the BOJ's decision on how soon, and by how much, it should raise still-low interest rates," writes Reuters.
The board of Japan's central bank previously expressed concern about the negative impact of tariffs on the country's economy, through which, as reported by the Kyodo agency based on its sources, it will have to be particularly cautious when considering the timing of an interest rate hike.
Cars accounted for over 28% of Japan's total exports to the US in 2024, reaching nearly CAD 53 billion - according to data from the Japanese government.
