Japan prime minister cautions against major concessions in US trade talks

Japanese Prime Minister Shigeru Ishiba said on Monday that his country does not intend to make major concessions in its trade talks with the United States later this week.

"I'm not of the view that we should make big concessions for the sake of wrapping up negotiations quickly," Ishiba told a session of parliament on Monday, according to Japanese news agency Kyodo News.

The United States earlier this month announced a 10 percent baseline tariff and higher reciprocal tariffs on imports from scores of nations, including a 24 percent levy on Japanese imports. The higher “reciprocal” tariff rate was lowered to 10 percent for most nations, including Japan, for 90 days, to allow countries time to negotiate with the Trump administration.

Trump’s 25 percent tariff on auto imports is still in place and dealt a hefty blow to the Japanese economy, which is heavily reliant on exports, about 30 percent of which reportedly come from the auto industry.

Japan is among the first countries with which the Trump administration said it will begin negotiations. Ishiba is sending Ryosei Akazawa, Japan’s economic revitalization minister, to Washington on Thursday to begin talks.

Ishiba said he was not inclined to pursue retaliatory tariffs but did not take that option completely off the table, according to the Japanese news agency.

"I don't think retaliatory tariffs would serve our national interests when we are hit by surging energy and food prices," Ishiba said, suggesting levying reciprocal tariffs could worsen inflation.

Akazawa told parliament on Monday that he will “devote myself (in the negotiations) to prioritizing what is most appropriate and effective for Japan's interests," according to the news agency.