Japan’s Ishiba says won’t do trade deal with US excluding autos

Ishiba on Monday made his stance clear when asked in parliament about the possibility that Washington might urge Tokyo to strike a provisional agreement that doesn’t address US tariffs on car imports.

In the same parliamentary session, top trade negotiator Ryosei Akazawa said that Japan will continue to seek a reprieve from all the tariff measures imposed by the US.
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The trade negotiations between the US and Japan are expected to accelerate later this month, with Akazawa having said he hopes for some manner of agreement in June. A local media report over the weekend indicated an agreement would likely be reached in early July, around the time Japan announces a national election.

Public broadcaster NHK reported that Japan has so far proposed expanding auto-related investment in the US and enhancing cooperation in shipbuilding in an effort to reach a compromise.

The high-stakes talks continue as the US reached its first deal with the UK and wrapped up its first formal negotiations with China. Autos are a key sector for the Japanese economy, which is already under pressure. Some analysts estimate that the economy contracted in the first quarter even before the 25% auto levy took effect.

Ishiba on Monday reiterated that Japan won’t sacrifice its agricultural market to protect autos.

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