Japanese trade speaker Ryosei Akazawa said the country could not accept 25% of American tariffs on cars, adding that Asian national operators provide more cars in America than they were transporting to America.
Japanese journalists make about 3.3 million cars in America a year, a number that is higher than 1.37 million they are transporting there, Akazawa told reporters on Thursday before leaving for Washington to make his seventh round of business negotiations with their American counterparts. The companies have invested more than $ 60 billion in America and created 2.3 million jobs, Akazawa said.
“We have repeatedly stated to America that the Japanese automotive industry has made a significant contribution to the American economy, and we intend to continue to express this clearly and seek understanding,” he said. “In any case, we consider 25% car tariffs to be unacceptable.”
Auto tariffs are part of the connection in bilateral negotiations as Washington focuses on its deficit in the industry, while Tokyo tries to protect its main economic pillar. After six rounds of negotiations more than two months, the two sides have not yet reached an agreement on tariffs.
Of the 3.3 million vehicles manufactured in America, about 300,000 are exported from America to other countries, it also helps to provide additional trade to America, according to Akazawa.
Still, the bonus of Japan and American trade last year stood at 8.6 trillion ($ 59.4 billion), the fifth largest on record. About 82% of the gap came from vehicles and parts of the car. The difference has put the nation in Trump's ways when he tries to reduce American trade deficits using tariffs.
Akazawa leads the American capital after Japanese Prime Minister Shigeru Isiba and US President Donald Trump last week failed to hit a deal on American top tariffs in seven conference groups. As with other nations, Japan is facing a combination of board and sector taxes. The former is set from 10% to 24% on July 9 to block the program when the last one includes 25% tariffs on vehicles and parts of the car with 50% tariffs on steel and aluminum.
Tokyo has maintained its position that it will try to end all tax disputes in one to a package that also handles sector tariffs. Akazwawa Thursday said he would remember the deadline of July 9 when he showed caution about weakening his negotiation position by setting the deadline.
Tariffs are already hitting the Japanese economy and shipping to the decline in America, especially in cars. The economy faces the risk of entering the technical economy before the highest housing elections on July 20.