Trade Tensions Mount as Japan Faces U.S. Tariff Threats

Japanese Prime Minister Shigeru Ishiba announced ongoing negotiations with the United States, aiming for a beneficial trade agreement after President Trump's declaration of a 25% tariff on Japanese goods starting August 1. While the threat of even higher tariffs looms, Ishiba remains firm on protecting Japan's national interests.

The discussions between Tokyo and Washington are at a critical juncture, with Ishiba highlighting that Japan was previously able to avoid even steeper tariffs of 30-35%. Ishiba urged his cabinet ministers to prepare strategies to offset any negative impact on industries and employment caused by these tariffs.

The economic landscape is further complicated by an upcoming upper house election and a shrinking economy, with real wages falling and a weakened yen. Analysts warn that the 25% tariffs could cut exporters' profits significantly, ultimately affecting wage growth and broader economic health.

(With inputs from agencies.)