Published: 12:02, May 12, 2025 | Updated: 16:58, May 12, 2025
Japan rules out trade deal with US that excludes auto tariffs
By Bloomberg
Japanese Prime Minister Shigeru Ishiba speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo on April 17, 2025. (PHOTO / AFP)

Japan won’t accept any initial trade agreement with the US that excludes an accord on autos, according to Prime Minister Shigeru Ishiba.

Ishiba on Monday made his stance clear when asked in parliament about the possibility that Washington might urge Tokyo to strike a provisional agreement that doesn’t address US tariffs on car imports.

In the same parliamentary session, top trade negotiator Ryosei Akazawa said that Japan will continue to seek a reprieve from all the tariff measures imposed by the US.

READ MORE: Japan PM Ishiba reiterates call to eliminate all tariffs with US

The trade negotiations between the US and Japan are expected to accelerate later this month, with Akazawa having said he hopes for some manner of agreement in June. A local media report over the weekend indicated an agreement would likely be reached in early July around the time Japan announces a national election.

Public broadcaster NHK reported that Japan has so far proposed expanding auto-related investment in the US and enhancing cooperation in shipbuilding in an effort to reach a compromise.

The high-stakes talks continue after the US reached its first deal with the UK and wrapped up its first formal negotiations with China. Autos are a key sector for the Japanese economy, which is already under pressure. Some analysts estimate that the economy contracted in the first quarter even before the 25 percent auto levy took effect. Preliminary gross domestic data for that quarter are due on Friday.

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Ishiba on Monday reiterated that Japan won’t sacrifice its agricultural market to protect autos.

On May 15 and 16, US Trade Representative Jamieson Greer is set to attend an APEC gathering of trade ministers in Jeju, South Korea.