Japan doesn't plan on responding to Trump tariff threats with countermeasures, government official says
TOKYO -- While the European Union has vowed to impose countermeasures if the Trump administration moves forward with its planned 30% tariffs on all EU exports to the U.S., another key strategic ally, Japan, is taking a different approach.
Unlike the European Union, the Japanese government has made no indication it plans to impose any kind of reciprocal tariff on the U.S., even if the U.S. does move forward with its planned 25% tariffs on all Japanese exports.
"We have no intention to change" the Japan-U.S. ally relationship, a Japanese government official told ABC News. "We will cooperate with the United States to make a win-win situation."
The potential U.S. tariffs on Japanese exports only increased by 1% in the Trump administration's July letter to the Japanese government, moving from 24% to 25% from Trump's initial proposal earlier this spring. Japan has already been impacted by the 25% tariff on the overall automobile industry, as it exports cars to the U.S. from its well-known brands including Honda, Toyota, Mitsubishi, Subaru and Mazda.
"That is why we continue to discuss with the U.S. administration at the minister level, of course," the official said. "We don't change our position. We explain and request it to the discussion of the minister."
Japan has attempted to remain calm since President Donald Trump first announced potential tariffs on all Japanese exports this spring, sticking with a strategy of steady diplomacy, a promise to invest further in the U.S. and patience.
Japanese government officials have met with their U.S. counterparts seven times since Japanese Prime Minister Shigeru Ishiba's initial meeting with Trump at the White House in February, the Japanese government official said. Trump and Ishiba also met on the sidelines of the G7 summit in Canada in June before Trump cut his trip short.
Ishiba was the second world leader to visit Trump at the White House after he took office in January.
Hideo Kumano, Japanese chief economist at Dai-ichi Life Research Institute, warned if the U.S. tariffs are imposed on Japanese goods, Japan will likely see a recession.
"It's inevitable to see some kind of damage," Kumano told ABC News. "There is a possibility that we will fall into recession."
But Kumano said he doesn't think Japan should retaliate like some other countries have to Trump's tariff threats.
"Trump is emotional, and countries like India or Brazil, they reacted in the same manner, and they also wanted to punish such a policy and impose high tariffs in response," Kumano said. "Europe is insinuating something like that, but I don't think Japan should do the same."
Instead, Kumano believes Japan should "smile superficially" and then "behind the scenes," prepare for the potential impacts of the coming tariffs.
"Behind the scenes, Japan or Japanese companies should react to potential impact of the tariffs and control or manage the transactions with the U.S.," Kumano said.
