The new trade deal between the United States and the United Kingdom has alarmed Japanese officials, with analysts saying it could set an unfavourable precedent for Washington’s talks with its other allies, just as Tokyo faces domestic pressure to shield the automobile and agriculture sectors ahead of a crucial election.
Prime Minister Shigeru Ishiba appeared on Fuji Television on Sunday to stress that Japan would pursue the elimination of tariffs in its trade talks with Washington. Referring to the US-UK agreement, he said it represented “one model” for trade agreements, “but we should aim for 0 per cent tariffs”.
Under the agreement unveiled last Thursday, duties on British car exports will be lowered while the US is retaining the 10 per cent baseline tariff on UK imports. It is the first such deal since Washington started negotiations with several countries that US President Donald Trump had earlier threatened with high tariffs, which are set to take effect in July following a 90-day pause.
Trump said on Friday that the 10 per cent tariff would remain the baseline for future deals, although exemptions might be granted to countries offering more favourable trade terms to Washington.
Currently, a 25 per cent levy applies to Japanese automobile exports to the US. A so-called “reciprocal tariff” of 24 per cent may also be imposed on other Japanese goods.
Robert Ward, Japan chair at the International Institute for Strategic Studies, said that automobile exports remained one of the most intractable issues in trade talks between Tokyo and Washington.
