Japanese prime minister warns of US tariffs’ impact on global economy

Japanese Prime Minister Shigeru Ishiba warned on Monday that US tariffs could disrupt the global economic order. However, he also emphasized that Japan would seek common ground with the US on how the two countries could cooperate on various issues, from trade to national security.

“When negotiating with the US, we need to understand the logic and emotional elements behind Trump’s views,” Ishiba said in a parliamentary speech.

“I am fully aware that what has happened so far has the potential to disrupt the global economic order,” he said.

Japanese Prime Minister Ishiba also stated that the government is not currently considering issuing a supplementary budget but is ready to take timely action to mitigate the economic impact of US tariffs. Ishiba had previously described Trump’s tariffs as a “national crisis” for Japan. Ishiba stated, “We must call this a national crisis. The government will do everything possible to respond to this crisis affecting the entire country.”

These statements come before the start of bilateral trade talks on Thursday, which are expected to cover various issues, from tariffs and non-tariff barriers to exchange rates.

In his latest statement on tariffs on Sunday, Trump said he would announce the tariff rate to be applied to imported semiconductors within the next week.

Economy Minister Ryosei Akazawa, Japan’s top negotiator in trade talks with the US, said any discussion of exchange rates would take place between Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent.

“Both countries share the view that excessive market volatility will have negative effects on the economy,” Kato said at the same parliamentary session.

Trump’s tariffs are expected to hit the Japanese economy hard. A failed response from Ishiba could become a liability for the prime minister as he leads his party into upper house elections this summer.

Prime Minister Ishiba’s cabinet was already shaky within the LDP and suffering from low approval ratings. His government faces a difficult task, including persuading affected industries within the country to comply with the outcome of negotiations and preparing aid measures.