Japan’s PM Ishiba signals no rush to strike US deal as gaps persist

TOKYO – Japanese Prime Minister Shigeru Ishiba said he will not rush into a trade deal with the US that would hurt the nation’s interests, while an opposition party head said the Premier still sees a large gap in stances between the two nations. 

Mr Ishiba is expected to meet US President Donald Trump on the sidelines of the Group of Seven leaders’ gathering in Canada starting June 15, but the Japanese leader said the time and date for the bilateral meeting has not been set. 

“If there’s progress before I meet the President, that’s in and of itself good,” Mr Ishiba told reporters in Tokyo on June 12.

“But what’s important is to achieve an agreement that’s beneficial to both Japan and the US. We won’t compromise Japan’s interests by prioritising a quick deal.”

The Prime Minister spoke following a gathering with opposition party leaders to discuss US tariffs.

After the closed-door meeting, Japan Innovation Party co-leader Seiji Maehara told the press that Mr Ishiba said there is a large gap in stances between the US and Japan.

The upcoming summit gathering in Canada is viewed as a potential moment for Japan and the US to reach some kind of agreement after two months of back and forth.

Failing to get any kind of deal there could worsen Mr Ishiba’s standing ahead of a national election in July as the tariffs threaten to push Japan’s economy into a technical recession.

Mr Ishiba said he cannot say how far the negotiations have progressed, and that he does not have a timeline for when an agreement may come, Mr Maehara said. 

Meanwhile, more pressure seemed to come from Mr Trump.

The US President said he intended to

send letters to trading partners

in the next one to two weeks setting unilateral tariff rates, ahead of a July 9 deadline to reimpose higher duties on dozens of economies.

For Japan, an across-the-board tariff is set to increase to 24 per cent from 10 per cent on that day, barring a deal.

The Asian nation is also trying to earn a reprieve from a 25 per cent tariff on autos and auto parts and a 50 per cent levy on steel and aluminium. 

Mr Ishiba’s top trade negotiator Ryosei Akazawa is expected to travel to North America later this week for the sixth round of negotiations with his counterparts. BLOOMBERG