Japan and EU Seek Comfort in Unity Amid US Tariff Talks Stalemate

The Japanese Ministry of Foreign Affairs announced on the 18th that Japan and the European Union (EU) will hold a leaders' summit in Tokyo on the 23rd of this month, where the two sides plan to discuss issues such as national security and the economy.

According to AFP, according to information from the Japanese Ministry of Foreign Affairs, Prime Minister Ishiba will meet with von der Leyen and President of the European Council Costa on the 23rd in Tokyo, and the three will discuss issues such as national security and the economy. Von der Leyen and Costa are expected to visit China after their visit to Japan.

The Japanese Ministry of Foreign Affairs emphasized: This meeting is an opportunity to enhance Japan-EU relations, and the EU is "an important strategic partner for Japan to jointly address challenges faced by the international community." The relevant work will focus on simplifying EU regulations and discussing how Japanese companies can participate in EU programs.

The Japan Economic News reported on the 17th that Japan and the EU will issue a joint statement at the summit, announcing the launch of a new "Economic 2+2 Dialogue." Both sides will explore public-private sector cooperation plans and seek methods to reduce dependence on China for rare earth procurement. This dialogue mechanism will start this summer, aiming to clearly identify areas of bilateral cooperation. Once this new dialogue at the working level is agreed upon by both sides, Japan and the EU will work together to develop supply chains for critical materials like rare earths.

Rare earths are materials used in making weapons, electric vehicles, and many electronic products. Many countries have been continuously trying to gain control over related supply chains to reduce China's control over rare earths.

Reuters reported that due to the fact that the majority of rare earth supplies come from China, and China has strengthened export controls, including limiting exports of rare earth alloys, mixtures, and magnets, global manufacturers are worried that Beijing's decision may slow down production and cause supply chain disruptions.

Strengthening relations between Japan and the EU has been included in both parties' priority agendas, but the immediate concern for both Japan and the EU is the ongoing difficult phase in their tariff negotiations with the United States.

The Dilemma of Japan

US President Trump announced on the 7th of this month that if the talks do not yield ideal results, he will impose a 25% tariff on imports from Japan starting August 1st. The Japanese government is currently expecting to communicate with the US through contacts at all levels.

Regarding the Japan-US tariff negotiations, Japan's proposal is to make substantial investments in the US and expand the import of US-made goods to reduce the US trade deficit. The US government is currently in the stage of carefully studying Japan's proposal, and the Japanese government is considering sending the Minister for Economic Revitalization, Akasaka, to the US soon to promote the progress of the tariff negotiations.

On the afternoon of the 18th, Prime Minister Ishiba held a meeting lasting more than 30 minutes with US Treasury Secretary Berger at the Prime Minister's Office (administrative center). Berger came to Japan for the "US Day" event at the Osaka Kansai Expo, but the Prime Minister obviously hopes to make the tariff negotiations with the US smoother. Berger comforted the Prime Minister, saying that "Japan and the US will surely reach a good agreement."

In their conversation, the Japanese Prime Minister presented two cards of economic and security concerns to strengthen the Japan-US relationship. After ending his meeting with Berger, the Prime Minister told the media, "I mentioned in the meeting that security issues in Ukraine, the Middle East, and Asia are related, and Japan and the US should strengthen cooperation. In the field of economic security, there are also many areas where Japan and the US should cooperate."

The Dilemma of the EU

The EU's tariff negotiations with the US are also very difficult. According to a report by the UK's Financial Times on Friday, Trump is demanding that any trade agreement reached with the EU include tariffs of at least 15% to 20% on all EU goods. Moreover, even if an agreement is reached, the Trump administration is considering setting reciprocal tariff rates above 10%, a stance that has led to a deadlock in trade negotiations and triggered a strong reaction from the EU.

As the deadline of August 1st approaches, the pressure on the EU increases. Trump previously threatened that if the EU fails to reach an agreement, he would impose a 30% tariff on all EU imports. There is a division within the EU on whether to retaliate. A senior diplomat said, "The atmosphere has clearly changed," and now the EU side is more supportive of taking retaliatory measures rather than continuing to compromise.

Therefore, at a time when the tariff negotiations with the US are stuck, Japan and the EU are seeking comfort in unity through consultations.

Original: https://www.toutiao.com/article/1838064282481802/

Statement: The article represents the views of the author.