▲ Shigeru Ishiba, Prime Minister of Japan
The Asahi Shimbun reported today (the 3rd) that as U.S. President Donald Trump is set to impose tariffs on Canada, Mexico, and China starting from the 4th (local time), tensions are rising within the Japanese government ahead of the U.S.-Japan summit scheduled for the 7th.
Japan’s Prime Minister Shigeru Ishiba is expected to emphasize the achievements of Japanese companies’ investments in the U.S. during the summit with President Trump. Additionally, local media report that he is attempting to avoid an increase in tariffs on Japan by expanding the purchase of American liquefied natural gas (LNG).
The countries announced as targets for the new tariffs— Mexico, China, and Canada—were the top three importers to the U.S. from January to November last year.
As these three countries have become the primary targets for President Trump, who is sensitive to trade deficits, President Trump has also warned of potential tariff expansions to the European Union (EU), including Germany, the fourth-largest importer to the U.S.
Although Japan, the fifth-largest importer to the U.S. with $135.7 billion (about 200 trillion won), hasn’t been explicitly criticized by President Trump, a senior official from the Japanese foreign ministry expressed anxiety, stating that there is no telling when tariff issues might arise.
Prime Minister Ishiba is scheduled to visit the U.S. from the 6th to the 8th to hold a summit with President Trump. There is significant attention on what demands might be made of Japan, given that the tariffs were announced shortly before the meeting.
The Japanese government is reportedly coordinating to announce an expanded importation of American LNG at the upcoming summit, as reported by the Mainichi Shimbun citing Japanese government sources.
On his inauguration day, January 20th, President Trump mentioned that the EU countries would need to purchase more American oil and LNG to avoid tariffs.
However, as the purchase of LNG is handled by private companies in Japan, there are no plans to present specific import targets at the summit.
The Nikkei also reported that Prime Minister Ishiba would express proactive intentions to increase imports of American LNG during his meeting with President Trump.
Moreover, Prime Minister Ishiba is considering directly providing President Trump with materials related to Japanese companies’ investment plans in the U.S. This approach aims to soften President Trump’s stance on imposing tariffs by reiterating Japan’s position as the top investor in the U.S., according to analysis by the Mainichi Shimbun.
Prime Minister Ishiba emphasized in a House of Representatives Budget Committee session on January 31 that Japan had been the largest investor in the U.S. over the past five years.
The Japanese government is prepared for the possibility of sudden tariff increases being discussed at the U.S.-Japan summit.
On February 1st, Prime Minister Ishiba summoned senior officials from the Ministry of Foreign Affairs to his official residence to prepare for the U.S.-Japan summit.
The Japanese government has been coordinating countermeasures through the Ministry of Foreign Affairs, the Ministry of Economy, Trade and Industry, and the Ministry of Defense since the end of last year, along with preparing potential Q&A for the meeting with President Trump.
Reuters reported that Prime Minister Ishiba might discuss supporting a $44 billion (about 65 trillion won) Alaska gas pipeline construction project to avoid trade friction during the summit.
The Nikkei expects that Prime Minister Ishiba will invite President Trump to visit Japan within this year, suggesting the proposal of inviting him to the Osaka Expo 2025, which is set to open in April, is gaining traction within the Japanese government.
With the U.S. government deciding to impose a 25% tariff on Canada and Mexico, and a 10% tariff on China from the 4th, Japanese automotive and parts manufacturers with factories in Mexico and Canada, as export bases to the U.S., are set to be directly impacted by the tariffs.
According to the Yomiuri Shimbun, Toyota, Honda, Nissan, and Mazda have manufacturing plants in Mexico, which also export vehicles to the U.S.
Toyota and Honda have also established manufacturing bases in Canada, with portions of their production being exported to the U.S.
In addition, companies supplying automotive parts and materials have entered these regions as well.
According to the Japan External Trade Organization (JETRO), Nissan produced about 620,000 vehicles in Mexico in 2023, with approximately 40% exported to the U.S.; Toyota produced about 250,000 vehicles with around 90% exported; and Honda produced about 170,000 vehicles with roughly 80% exported to the U.S.
A senior official from Toyota Motor Corporation expressed the impact of the tariff imposition decision, stating that it was based on the premise of production and sales within the Free Trade Agreement (FTA), and “the shock is significant.”
In response to the U.S. tariff imposition, the Japanese government has begun taking countermeasures.
The Ministry of Economy, Trade and Industry has set up a dedicated hotline to assist companies alongside JETRO.
(Photo credit: Getty Images Korea)