According to current and former Japanese government officials, because Tokyo’s trade relationship with Beijing is of vital importance, Japan intends to resist any efforts by the United States to include it in an economic bloc against China.
Like many other countries, Japan is trying to permanently ease President Trump’s tariffs by addressing the US concerns in bilateral trade areas such as automobiles and agriculture. These unnamed officials said that Japan is striving to reach an agreement before the current 90-day tariff reduction period expires. One of them said that Japan hopes to finally reach an agreement around the G7 summit in June.
Meanwhile, officials said that Japan does not want to be involved in any US measures to maximize trade pressure on China by restricting economic interaction with Beijing. Beijing is Tokyo’s largest trading partner and an important source of goods and raw materials for Tokyo.
Japanese officials said that although the United States has not yet made any specific demands on Japan regarding China, if such a situation occurs, Tokyo will prioritize its own interests. One official added that Japan has repeatedly expressed to China that it does not fully agree with the US position on chip-related exports and semiconductor restrictions.
When Bloomberg asked, the Japanese Foreign Ministry did not immediately comment.
U.S. Treasury Secretary Scott Bessent is playing a leading role in trade negotiations with Japan and other countries. He said earlier this month that the United States will seek to reach agreements with its allies, “and then we can approach China as a united front.” Bloomberg later reported that the United States is preparing to demand that countries seeking tariff relief reduce their economic ties with China, a move aimed at strengthening the United States’ leverage over Beijing, which is trying to win concessions from China on trade issues.
Japan’s chief trade negotiator, Ryoichi Akasaka, sidestepped questions about Besant’s remarks on Friday.
Akizawa said, “My mission is to request a review of the additional tariffs.” He plans to return to Washington soon for a second round of talks with US officials.
The United States might try to take some actions in concert with other countries that have reached agreements with it. But that’s beyond the scope of my responsibilities.
Japan is currently weighing concessions before the second round of trade negotiations.
This could be reflected in the agricultural sector. The Yomiuri Shimbun reported that the Japanese government is considering purchasing more US corn; the Nikkei said that Japan is expected to increase its soybean imports. NHK reported that the government is considering releasing an overview of investment plans by Japanese automakers in the United States.
Japanese Finance Minister Katsunobu Kato played down speculation that the United States would press Japan over the weakness of the yen, saying that foreign exchange targets were not discussed in his Thursday meeting with Mnuchin.
As Japan prepares for trade negotiations, Prime Minister Ishiba Shigeru is also seeking to mitigate the potential impact of US tariffs on the domestic economy. He has announced an emergency economic stimulus package aimed at helping small businesses and agriculture.
Taro Kono, a lawmaker of Japan’s ruling Liberal Democratic Party and a former foreign minister, said in an interview with Bloomberg Television on Wednesday: “We need to be very careful about economic security issues and supply chains involving China.”
Tokyo is not only not reducing trade, but is also trying to prompt China to resume imports of seafood and beef from Japan. Previously, China imposed a ban on Japan due to health concerns. Multiple Japanese delegations have visited China to handle Sino-Japanese relations.
Saito Tetsuo then said that both sides agreed to support the multilateral trading system and each would push the Trump administration to lower tariffs.
As a demonstration of Japanese companies’ commitment to the Chinese market, Toyota Motor Corporation agreed this week to open a new factory in Shanghai in 2027. It is reported that the company plans to invest approximately 2 billion US dollars in the factory.