Security Issues Including Cost-Sharing for U.S. Forces in Japan Also on the Agenda
Currency Discussions Excluded from Negotiations That Day
Second Round of U.S.-Japan Talks Scheduled for End of This Month
Japanese Prime Minister Shigeru Ishiba held a press conference on the 17th in Tokyo, Japan, regarding US-Japan negotiations and announced plans to visit the United States soon to meet directly with President Donald Trump. Photo by EPA Yonhap News
In the first tariff negotiations between the United States and Japan, which will serve as a gauge for the Korea-US tariff talks, both countries agreed to reach an early agreement within the 90-day mutual tariff suspension period and have their leaders announce the results. Unlike the negotiations with the European Union (EU), U.S. President Donald Trump, who unusually participated directly in the talks, increased pressure by demanding that not only simple trade and economic issues but also security matters such as the "cost-sharing for U.S. forces stationed in Japan" be included on the agenda. However, discussions on exchange rates aimed at achieving a weaker dollar, which the Trump administration desires, were reportedly excluded from the negotiation table that day. After the talks, Japanese Prime Minister Shigeru Ishiba expressed his intention to visit the U.S. for direct talks with President Trump, stating, "Discussions were held to move to the next stage."
On the 16th (local time), Bloomberg News reported that Ryosei Akazawa, Japan's Minister for Economic Revitalization responsible for tariffs, conducted the first tariff negotiations with the U.S. in Washington D.C. and said, "Both sides agreed to reach an early agreement so that the leaders can announce it." He added, "The U.S. and Japan agreed to coordinate schedules to hold the next talks within this month and to continue consultations not only at the ministerial level but also at the working level." It is said that the second round of negotiations will take place at the end of this month.
The spotlight of the negotiations that day was on President Trump. Minister Akazawa was scheduled to negotiate with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative (USTR) Ambassador Jamie Gorelick, who is in charge of trade talks with Japan, at the Treasury Department. However, President Trump suddenly took the initiative to hold a preliminary meeting himself, and the negotiations started earlier than scheduled. According to Japan's Asahi Shimbun, President Trump made it clear at this meeting that he intended to include not only tariffs and trade but also security issues such as the "cost-sharing for U.S. forces stationed in Japan" on the agenda. Regarding this, Minister Akazawa only said, "President Trump mentioned during the meeting that consultations with Japan would be a top priority."
President Trump, who did not take a front role in the tariff negotiations with Europe that began on the 14th, unusually appeared directly in the negotiations with Japan. Before the main negotiations even started, he boasted on his social media, "It was an honor to meet with the Japanese trade delegation just now," adding, "There has been great progress." This fulfilled Treasury Secretary Mnuchin's prediction on the 9th that "President Trump wants to be directly involved in negotiations with various countries." In Japan, concerns were even raised that if President Trump participated directly in the negotiations, Prime Minister Ishiba might have to visit the U.S. earlier than planned.
Additionally, the Japanese government conveyed its "regret" to the U.S. regarding the tariff attacks against Japan. Minister Akazawa explained, "In this negotiation, we expressed that the U.S. tariff measures are extremely regrettable and requested a review of tariff policies." On June 2, the U.S. government announced mutual tariffs targeting so-called "worst countries" with trade surpluses against the U.S., and Japan was subjected to a 24% tariff. Although this rate is lower than South Korea's 25%, many had initially evaluated the summit between President Trump and Prime Minister Ishiba on the 7th as "successful," so there was a sense of bewilderment within Japan.
Japanese tariff official, Economic Revitalization Minister Ryosei Akazawa, met with reporters on the 16th (local time) in Washington D.C., USA, after the first tariff negotiations with the United States concluded. Photo by Reuters Yonhap News
Minister Akazawa also stated, "There was no discussion on foreign exchange issues," and added, "I believe the U.S. wants an agreement within the 90-day suspension period." He refrained from commenting on whether security issues or non-tariff barriers were discussed but added that both sides showed a willingness to continue negotiations. Previously, it was anticipated that the U.S. would demand three things from Japan: ▲ increased investment in the U.S. to strengthen American manufacturing ▲ a shift to a weaker dollar ▲ cost-sharing for allied defense. Attention was also drawn to the fact that the U.S. has long criticized Japan's non-tariff barriers in the automobile and agricultural sectors. Participation in liquefied natural gas (LNG) development in Alaska was also expected to be on the negotiation agenda. In his first joint session speech to Congress after taking office last month, President Trump pressured both countries by mentioning, without confirmation, that "Japan and South Korea want to invest trillions of dollars."
According to Asahi Shimbun, Prime Minister Ishiba also told reporters at the Prime Minister's Office that morning, "Discussions were held to move to the next stage," and "I will visit the U.S. at the most appropriate time to meet President Trump face-to-face." He also evaluated, "I held about a 50-minute meeting with President Trump, followed by a 75-minute meeting with Secretary Mnuchin and others," describing the talks as "honest and constructive discussions that lasted for a considerable time." However, he refrained from commenting on sensitive issues such as the cost-sharing for U.S. forces stationed in Japan.
The outcome of the U.S.-Japan negotiations is expected to serve as an important "reference guideline" for South Korea as well. South Korea is scheduled to begin negotiations next week. This is because the Trump administration designated South Korea as a top-priority negotiation partner along with Japan, the United Kingdom, Australia, and India. In particular, President Trump expressed in a phone call with Acting President and Prime Minister Han Duck-soo his desire to conduct a "one-stop shopping" for tariffs and defense cost-sharing. Next week, visits to the U.S. by Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, and others are also planned.
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