Global geopolitical Series: Japan’s deputy PM and finance minister Aso rules out bilateral trade negotiations with U.S.

Japanese Deputy Prime Minister Taro Aso, who is also the country’s finance minister, has ruled out a bilateral trade negotiations with the United States, stressing that such a deal would be no good for Japan. The discussion was raised in the Japanese parliament as South Korea became the first country to secure permanent exemption from President Trump’s 25 percent tariffs on all Steel products and 10 percent tariffs on all Aluminum products, which were imposed earlier this month. Fears of a trade war mounted this month after Trump imposed tariffs on steel and aluminium imports, and then specifically targeted China by announcing plans for tariffs on up to US$60 billion (S$79 billion) of Chinese goods. 

Aso said that Japan should avoid being dragged into a bilateral trade negotiations as when two countries negotiate, the stronger gets stronger and it would only create unnecessary pain for Japan as the U.S. would be looking to get into Japan’s heavily protected agricultural market. Aso said that Japan only exports specialized Steel products into the United States and in that it has outstanding market share since the U.S. companies can’t produce such. He highlighted that it would be the U.S. companies which would suffer from the import tariff, since they need to buy those products from Japan.

Mr. Aso has been heading Tokyo’s delegation for two-way dialogue with the United States on broad economic matters and his delegation has been pushing for exemptions from U.S. tariffs on steel and Aluminium imports, with little success so far.