Japan's chief trade representative reiterated: It will not rush to reach an agreement while demanding the US to remove tariffs!

The US is currently engaged in trade negotiations with multiple countries. However, contrary to the White House's claim that "many countries are eager to reach agreements with the US," Japan has once again reiterated its stance that it is not in a hurry to conclude a trade agreement.

On Tuesday, Akio Akazawa, Japan's chief trade negotiator, stated that the Japanese government's position remains unchanged in demanding the removal of US tariffs during bilateral trade negotiations.

He added that the series of tariffs imposed by the US on Japan, including reciprocal tariffs, tariffs on automobiles and parts, and tariffs on steel and aluminum, are regrettable. Japan hopes to re-examine and eliminate all these tariffs.

Japanese policymakers and ruling party lawmakers have pointed out that, given the importance of the automotive industry to Japan's economy, any agreement with the US would be meaningless unless the US removes tariffs on Japanese automobiles.

Take it slow

It is understood that Japan was the first country to engage in bilateral trade negotiations with the US over tariff issues, while the UK was the first to reach an agreement with the US. However, following the announcement of a temporary reciprocal concession agreement between China and the US, Japan has apparently slowed down the pace of negotiations.

Akazawa stated that the US and Japan held working-level trade talks in the US on Monday, but the timing for the third round of ministerial-level negotiations has yet to be determined.

A source indicated that Japan may consider offering a package of measures in exchange for US concessions, which could include increasing imports of US corn and soybeans, cooperation in shipbuilding technology, and revising US inspection standards for Japanese imported automobiles.

In addition, Japanese Finance Minister Shunichi Suzuki also stated on Tuesday that he expects to hold talks with US Treasury Secretary Scott Bessent on exchange rate issues, but any discussions must be based on a mutual consensus that excessive exchange rate fluctuations are undesirable.

Suzuki further stated that he will exchange views with Bessent on various bilateral issues, including monetary policy. He added that Japan is closely monitoring the impact of Moody's downgrade of the US credit rating last week, particularly on the US economy and markets.