Japanese PM Ishiba calls current levies harmful and advocates for zero tariffs in US trade talks

Shigeru Ishiba, the prime minister of Japan, has advocated for zero tariffs with the US, claiming that auto tariffs also harm American customers.

In continuing trade talks with the United States, Japanese Prime Minister Shigeru Ishiba has reaffirmed his government’s goal to remove all tariffs, claiming that current import taxes are detrimental to both economies.

Ishiba claimed in an interview with Fuji Television on Sunday that trade talks between Washington and Tokyo had “gradually come together” and that he had a “surprisingly good” connection with US President Donald Trump.

Ishiba cited Washington’s agreement with London, which was revealed Thursday, as merely a partial blueprint for future trade accords, even if he praised recent progress. That agreement kept the base tariff at 10% while lowering taxes on British auto exports.

Ishiba stated that “we should aim for 0% tariffs,” adding that high vehicle import taxes increase the cost of cars for American consumers and that “shouldn’t those tariffs be lowered for the sake of the American economy as well?”

The present 25% US tariffs on Japanese car imports have been a major source of concern, as the country’s auto industry continues to be a vital pillar of its economy. In response, Japan levies a reciprocal charge of 24% on some US goods.

Trump said on Friday that even once trade agreements are finalized, the US will maintain a default 10% import tariff, while he allowed for exclusions in exchange for “significant trade terms.”

The back-and-forth highlights the strategic economic balancing act Tokyo must do in order to protect key sectors from retaliatory actions while negotiating a more favorable framework with a protectionist US government.

Regarding internal affairs, Ishiba also responded to rumors that Japan’s 10% consumption tax would be lowered.

“What would happen to the nation’s finances if we abruptly reduced the consumption tax?” he inquired. “We must consider whether we can assist those who are genuinely in need in any other way.”

The prime minister stated that fiscal prudence must be the guiding principle of any tax reform decisions, even while he supported relief measures for households who were at risk.