Japan Rejects One of Trump's Demands

Japan cannot accept a 25 percent US tariff on its cars, Japan's economic and fiscal policy minister, Ryosei Akazawa, who is currently serving as its top trade negotiator, said in a statement quoted by Bloomberg .

He recalled that Japanese automakers produce about 3.3 million cars a year in the United States, which is much more than the 1.37 million they export. In addition, companies from this Asian country have invested more than $60 billion in the American economy and created 2.3 million jobs there. Therefore, as Akazawa explained, his country cannot accept the 25 percent US tariffs on cars.

According to the minister, of the 3.3 million cars produced in the United States, about 300,000 are sent to other countries, which contributes to the formation of a positive trade balance for the United States.

In this regard, the publication recalled that automobile duties have become a stumbling block in bilateral negotiations between Tokyo and Washington . Six rounds of negotiations have already taken place in two months, but both sides have still not reached an agreement. Meanwhile, American tariffs are already hitting the Japanese economy. Exports to the US are falling and the risks of entering a technical recession are growing.

According to the Financial Times, major Japanese companies such as Toyota, Sony and Mizuho could lose up to $27.6 billion due to US tariffs.