Japan continues negotiations with the US on auto and steel tariffs, with a fourth round of talks expected to clarify further steps in this challenging economic situation.
Objectives of the Talks and Positions
Japan's chief tariff negotiator Ryosei Akazawa is set to visit the US on May 30 for the fourth round of negotiations. Central to the discussions will be the contentious auto and steel tariffs, which remain unresolved. Akazawa has stated the necessity for a mutually 'win-win' agreement, emphasizing the importance of eliminating US tariffs.
Reactions from Major Automakers
Automakers like Toyota and Nissan have urged their US branches to support Japanese suppliers amid new tariffs. According to Reuters, Nissan has advised its suppliers to stick to agreed pricing, while Toyota has committed to acting 'in good faith' amidst the challenging situation.
Economic Consequences of Tariffs
The auto tariffs threaten not only major manufacturers but also small auto parts suppliers. Analysts warn of potential consolidations among suppliers as the impact of the tariffs may lead to increased costs and reduced orders. Some companies are considering looking for partners outside the US.
The trade talks between Japan and the US are becoming increasingly tense, and their outcomes will significantly impact the economic relations between the two countries, especially in the automotive sector.
