Unlock Editor Digest for FREE
Roela Khalaf, Ft Editor, selects his favorite stories in this weekly newsletter.
The head of one of Japan’s most powerful business lobbies has accused the government of a “mistake” in its trade negotiating strategy with the US, after president Donald Trump announced 25 per cent tariffs on Washington’s closest Asian ally.
Taken by Takeshi Niinami, chief executive of Supyy and Chair of influential corporate executive association, such J’TanPressure of a total exemption from Trump’s tariffs can leave the US president who feels “betrayed”, add that the country that earns a tariff that shows more quickly.
“They introduced Trump’s determination,” Niinami told the financial period Tuesday. “They think the time is on the side of Japan. It’s a big mistake.”
He said Tokyo is currently on a weakened foot and can be forced to make big concessions to secure an agreement. Niinami added that there was a narrow window to make the first part of the home election this month, if the main liberal democratic party loses power.
“It may be too late,” niinami said.
Japan is quickly started this year in hope of having relief from Trump tariffs with a fast track deal. But the US president on Monday Revealed 25 percent tariffs In the country – a percentage point higher than initially announced April – after talks failed to make the road.
Niinami’s unusual comments are timed for the new “retetcal” level of Asia, including South Korea, Malaysia, Thailand and Indonesia. Levies, which previously frozen until July 9, should be loud on August 1.
HSBC says Tuesday that Japan may find the most difficult to offer more concessions. “The reign of Ishiba coalition is under care of auto exporters, rice farmers and other critical constitutions on 9 July,” it says.
The announcement was followed in the weeks that did not become negotiations between Tokyo and Washington, despite claims of two sides made in progress. Trump last week Japan is accused of “damaged” Due to the refusing to remain more American rice or to allow achievement cars in its market.
Niinami says stiffness in Japan – including Ishiba’s refusal to sacrifice rice farmers Shinzo Abe in the first US term.
“Trump has a high expectation of Japan because Mr Abe, (and believes) Japan can be a showcase,” Niinami said. “We need to analyze that level of expectation.”
Japan has always asking for an exemption From Trump’s tariffs, discussing “special relationships” of allies “. According to US and Japan officials Ryosei Akazawa, who engaged many telephone calls, not to meet tariffs.
Niinami’s criticism echoed by David Boling, trader director of Japan and Asian in Eurasia’s soul thought that a trade agreement had an effect on 2020.
“Japan is badly wrongly wrong position by taking a maximum position that the US should eliminate all tariffs. The strategy is a fantasy,” he said. “If Japan wants to reach agreement on August 1, it should be more pragmatic.”
Akazawa talks to the US Commerce Secretary Howard Lutnick for 40 minutes on Tokyo’s businessman for more talks.
Masakazu Tokura, Chaird of the Japan Business Federation, an opposite business lobby group known at the local keidanren, measuring keidanren negotiations by hanging a solving “.
Mitsunobu Koshiba, a director of many leading companies in Japanese, suggesting that Japanese groups have the ability to absorb tariffs because of weak yen.
“Now I enjoy getting ¥ 145 replacement of tariffs,” he said, compared to the level of approximately ¥ 110 per dollar in the first Trump administration.
