TOKYO (AP) — Japan’s chief trade negotiator, Ryosei Akazawa, has publicly defended a recent tariffs agreement with the United States, acknowledging President Donald Trump as a “tough negotiator” and highlighting the merits of the deal despite criticism.

Key Aspects of the Tariffs Agreement

Akazawa explained that the new pact sets most Japanese exports to the U.S. at a tariff rate of 15%, which he compared favorably to a similar agreement between the U.S. and the European Union. Unlike the EU, however, Japan did not have to reduce its tariffs on American goods, allowing for a potentially advantageous position.

New Investments in U.S. Projects

In addition to tariff negotiations, Japan has pledged to invest $550 billion in U.S. infrastructure and projects. This investment is expected to bolster economic ties between the two nations amidst rising trade tensions.

Negotiation Dynamics

Trump’s administration initially proposed a drastic increase in Japan’s tariff rate to 25%. Akazawa described the early negotiation phase as tense, but he emphasized that over his eighth trip to the U.S., a rapport was established. “President Trump was a tough negotiator, but I kept insisting, and he would listen graciously,” Akazawa remarked during a press conference at the Foreign Correspondents’ Club of Japan.

“It was a good round of negotiations,” he added, addressing concerns that critics might perceive a loss for Japan in the process. “With any government negotiations, there will always be someone who says Japan lost out, no matter what,” he stated.

Impact on Japan’s Economy

The tariffs imposed by Trump had already dealt a significant blow to Japan’s economy, particularly affecting key exports. Shipments to the United States saw a nearly 14% decline in August compared to the previous year, marking the fifth consecutive month of decreasing auto exports, which have been hard hit by the tariffs.

The tariffs on Japanese automobiles and auto parts are now set to 15%, a substantial increase from the original 2.5%. Notably, many Japanese automakers manufacture vehicles sold in the U.S. within North America, which helps mitigate some of the impacts of these tariffs.

Political Context in Japan

The ongoing tariff friction with the U.S. poses an additional challenge for Japan’s Prime Minister Shigeru Ishiba, who is set to be replaced as the leader of the ruling Liberal Democratic Party soon. The party has been in power almost continuously since the 1950s but has lost its majority in the lower house and will require coalition partners moving forward.

Despite the uncertainties surrounding Japan’s future leadership, Akazawa expressed confidence in the stability of the agreements made. “Whoeverbecomes the next prime minister, Japan has an established tradition of respecting agreements, especially those forged with foreign nations,” he assured, reflecting optimism about the ongoing cooperation between Japan and the U.S.

Conclusion

As the trade landscape continues to evolve, the newly negotiated tariffs and substantial investment commitments underline the complexity of U.S.-Japan relations. While challenges remain, both nations appear committed to fostering a strategic partnership that can withstand political changes.