Ishiba Says US-Japan Trade Deal Is 'Win-Win' but Implementation May Be Harder Than Agreement

Remarks at the National Diet Q&A Session
Uncertainty Remains Over Automobile Tariffs

Japanese Prime Minister Shigeru Ishiba is walking at the National Diet Building located in Tokyo, Japan, on the 1st. Photo by Reuters Yonhap News

Japanese Prime Minister Shigeru Ishiba described last month's US-Japan trade agreement as "win-win" but also stated on August 4 that "implementation may be more difficult than the agreement itself."

According to Bloomberg News, during a question-and-answer session at the National Diet on this day, Prime Minister Ishiba said, "There is a saying that implementing a trade agreement is more difficult than signing it," and added, "I humbly ask for your continued support."

Ryosei Akazawa, Japan's Minister for Economic Revitalization and the country's chief tariff negotiation representative, responded to criticism regarding the lack of written documentation for the agreement by saying, "I also agree that having a documented agreement would be more helpful," but added, "However, please note that there is also no documentation for agreements with the European Union (EU) and Korea."

Bloomberg News pointed out, "These remarks indicate the significant uncertainty underlying the entire trade agreement with the United States," and added, "In particular, the direction of automotive tariff measures remains unclear."

Japan concluded negotiations with the United States on July 22, centering on a mutual tariff rate of 15%. The US tariff on Japanese automobiles was reduced from 25% to 12.5%, resulting in a final rate of 15% when including the existing 2.5%. The reduction in automobile tariffs, which is considered a core industry for Japan, garnered positive responses domestically. However, the agreement did not specify the exact timing for implementing the tariff reductions.

The Japanese government has also stated its intention to maintain ongoing communication with the US government to alleviate concerns within the industrial sector. On August 1, Minister Akazawa said, "We will continue to urge the United States to take immediate steps to implement the recently agreed-upon measures," and added, "Japan will also fulfill the commitments we have made."

The US tariff measures on Japanese automobiles were expected to have a significant impact on the Japanese economy. According to the Wall Street Journal, automobiles account for about one-third of Japan's exports to the United States. In May, companies such as Honda and Nissan stated that they anticipated losses amounting to several trillion yen due to the tariff measures.

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