US tariffs could shatter global economic order - Japanese PM warns
Japanese Prime Minister Shigeru Ishiba (Photo: Getty Images)
Japanese Prime Minister Shigeru Ishiba stated that the US tariffs could disrupt the global economic order. They must become the subject of negotiations, Reuters reports.
The Japanese Prime Minister expressed the most severe warning to date about the damage that President Donald Trump’s decisions could cause to the global economy.
"I am fully aware that what's happened so far has the potential to disrupt the global economic order," he said.
However, he emphasized that Japan will seek common ground with the United States on cooperation between the two countries on various issues — from trade to national security.
"In negotiating with the United States, we need to understand what's behind Trump's argument both in terms of the logic and the emotional elements behind his views," Ishiba told parliament.
Ishiba also stated that the government is not currently considering the launch of an additional budget but is ready to act in a timely manner to mitigate the economic impact of American tariffs.
Negotiations
These comments came on the eve of the start of bilateral trade talks on April 17, which are expected to cover a wide range of topics — from tariffs and non-tariff barriers to currency exchange rates.
Economy Minister Reizei Akazawa, Japan’s chief parliamentary negotiator in trade talks with the US, stated that any discussions of exchange rates will be conducted between Japan’s Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent.
"Both countries share the view that excessive market volatility would have adverse effects on the economy," Kato said at the same parliamentary session.
Trump’s tariffs
Trump’s tariff statements last week triggered the sharpest fluctuations on Wall Street since the COVID pandemic in 2020. The benchmark Standard & Poor’s 500 index has fallen by more than 10% since Trump took office on January 20.
Trump canceled increased tariffs against most countries, but raised tariffs on China to 145%.
The White House announced exceptions from high reciprocal tariffs, which sparked some hope that the tech sector might avoid being drawn into the escalating conflict between the US and China.
However, on April 13, Trump said he would announce the tariff rate on imported semiconductors within the next week. This means that the exclusion of smartphones and computers from tariffs in response to China will most likely be short-lived.
After World War II and the San Francisco Peace Treaty signing, Japan became a key US ally in Asia. Under the mutual security treaty, the United States pledged to defend Japan, and Japan provides military bases on its territory.
