Japanese Prime Minister Shigeru Ishiba stated that the trade agreement reached last month between Japan and the United States is a 'win-win' for both countries, but implementing the terms of the agreement may be even more challenging than reaching the deal itself.
According to Bloomberg, Ishiba said during a parliamentary inquiry on the 4th: “Some have said that executing this trade agreement is harder than concluding it. I earnestly ask everyone to continue supporting the agreement.”
Remarks by Ishiba and Akazawa Ryomasa highlight that, even after the August 1st expiration of the tariff suspension period, there remains significant uncertainty surrounding the series of global trade agreements the US has reached with various countries.
Washington agreed to impose a 15% across-the-board tariff on Japanese imports, lower than the previously threatened 25%; the fate of auto tariffs remains unclear.
After suffering a major setback in the July upper house elections, Ishiba faces pressure to step down, but he has vowed to stay on to ensure the full implementation of the US-Japan trade agreement.
Just days after losing the upper house majority, Ishiba unexpectedly reached a trade agreement with the United States. Compared with other countries, the US-Japan agreement has yielded relatively favorable results for Japan.
Automotive Tariffs as High as 27.5%
Currently, the US levies a 27.5% tariff on Japanese automobiles, adding to the existing 2.5% rate. This places a heavy burden on the Japanese economy, as the automotive sector is Japan’s largest source of exports to the US and accounts for around 10% of the nation’s GDP.
Ishiba said: “Our top priority must be to make every effort to substantially lower auto tariffs, as this is most closely linked to our national interests.”