Japan begins talks with US to sound out Trump tariff specifics

Japan began talks with the US to find out the details of President Donald Trump’s planned reciprocal tariff measures, as the Asian nation braces for potential fallout.

Japanese Trade Minister Yoji Muto and Chief Cabinet Secretary Yoshimasa Hayashi told reporters Friday that Tokyo began communicating with Washington over the matter, after Trump ordered his administration to consider imposing reciprocal tariffs on numerous trading partners.

Trump has singled out Japan and South Korea as nations that he believes are taking advantage of the US, according to a White House official. In the past, Trump has attacked the US’s trade deficit with Japan, and yen weakness that feeds into that imbalance.

This time, Trump is taking aim at nations that impose higher tariffs than the US, while also taking into account non-tariff barriers that countries put on the US, including unfair subsidies, regulations, value-added taxes, exchange rates and other factors, according to a copy of a memo distributed by the White House.

For Japan, the potential for fresh tariffs from the US threatens an economy that’s expected to have slightly shrunk last year, while Prime Minister Shigeru Ishiba’s minority government continues to try and shore up lackluster support.

Asked if Japan imposes higher tariffs than the US and the potential impact from non-tariff measures, Muto gave a generic answer and steered clear of a direct response.

“We need to find out the specifics as soon as possible, and we have to start by listening to the US government’s thinking on this,” Muto said. “We’ll respond appropriately so we can continue to develop the US-Japan economic relationship while also being in line with our national interest.”

BLOOMBERG