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Japan’s PM Defends National Interest as Trump Ramps up Threats

“Japan is different from other countries as we are the largest investor in the United States, creating jobs,” Ishiba said in a debate on Wednesday. But the US looks more likely to do a deal with India before July 9


Japanese Prime Minister Shigeru Ishiba, of the ruling Liberal Democratic Party, holds a press conference after he won LDP leadership in Tokyo, September 27, 2024 (Reuters file image).

 

Japanese Prime Minister Shigeru Ishiba stuck to his guns on Wednesday, saying he had to protect his country’s interests after three days of threats of higher tariffs from US President Donald Trump.

“Japan is different from other countries as we are the largest investor in the United States, creating jobs,” Ishiba said in a public debate with opposition party leaders.

“With our basic focus being on investment rather than tariffs, we’ll continue to protect our national interest while working to reduce the US trade deficit with Japan,” he said.

 

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A deal with Japan before the US deadline next week looks unlikely, largely because Ishiba is in a tough spot – as the ruling coalition faces a key upper house election on July 20 and any easy concessions would undermine support.

But Trump has hammered Tokyo relentlessly for three days running, as the Japan Times noted today.

On Tuesday the US President cast doubt on a possible deal with Japan, indicating that he could impose a tariff of 30% or 35% on Japanese imports – well above the 24% rate he announced on April 2 and then paused until July 9.

 

Carmakers facing 25% tariff

Tokyo has yet to secure a trade deal after nearly three months of negotiations as it scrambles to find ways to get Washington to exempt Japan’s automakers from 25% automobile industry-specific tariffs, which are hurting the country’s manufacturing sector.

Japanese broadcaster TV Asahi reported on Wednesday that Japan’s tariff negotiator, Ryosei Akazawa, was organising his eighth visit to the United States as early as this weekend.

Speaking to reporters late Wednesday, Akazawa said he would not rule out the possibility of travelling to the US, but no specific plan had been decided.

Echoing Ishiba, Akazawa said he was aware that July 9 was an important milestone, but that Japan should not rush into reaching an agreement that would harm the country’s interests.

Ishiba said during the debate that Japan would continue to create jobs in the US while protecting domestic industries.

“If auto sales to the US are bound to drop, we will boost domestic demand and diversify export destinations to protect Japanese industries,” Ishiba said.

Yoshihiko Noda, the leader of the largest opposition Constitutional Democratic Party of Japan, criticised Ishiba’s tactics, accusing his administration of failing to set a clear framework for negotiations and being unable to convince the US side on Japan’s contributions.

The country has other troubling distractions as well, with more than 900 earthquakes shaking the Tokara Islands over the past two weeks – most of them small, but there are fears a big one could be on the coming soon.

 

Trade deal with India more likely

Meanwhile, the United States could reach a trade deal with India that would help American companies compete in the South Asian country and leave it facing far lower tariffs, President Donald Trump said on Tuesday.

Trump told reporters aboard Air Force One that he believed India was ready to lower barriers for US companies, which could pave the way for an agreement staving off the 26% rate he announced on April 2.

“Right now, India doesn’t accept anybody in. I think India is going to do that, if they do that, we’re going to have a deal for less, much less tariffs,” he said.

Earlier, Treasury Secretary Scott Bessent told Fox News that the US and India are nearing a deal that would lower tariffs on American imports to the South Asian country and help India avoid levies from rising sharply next week.

“We are very close with India,” Bessent told Fox News in response to a question about progress on trade negotiations.

Indian officials extended a visit to Washington last week through till Monday to try to reach agreement on a trade deal with President Trump’s administration and address lingering concerns on both sides, Indian government sources told Reuters.

A White House official familiar with the talks said the Trump administration plans to prioritize securing trade deals with countries including India ahead of Japan in the days leading up to the July 9 deadline.

India is one of more than a dozen countries actively negotiating with the Trump administration to try to avoid a steep spike in tariff rates on July 9, when a 90-day tariff pause ends. India could see its new “reciprocal” tariff rate rise to 27% from the current 10%.

 

  • Reuters with additional editing and input by Jim Pollard

 

NOTE: Further content (about a deal with India) was added to this report on July 2, 2025.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.