China has reportedly urged Japan for a coordinated response to tariffs imposed on both nations by US president Donald Trump.
Chinese premier Li Qiang sent a letter to Japanese prime minister Shigeru Ishiba, stressing the need to fight “protectionism together”, Japan’s Kyodo news agency reported.
The letter was sent via the Chinese embassy in Japan just weeks after the China’s state media claimed China, Japan and South Korea have agreed to jointly respond to US tariffs.
Mr Trump sounded recession alarm bells this month after imposing what he called “reciprocal” tariffs on dozens of countries during his “Liberation Day” announcement. The trade war between Washington and Beijing escalated with Mr Trump imposing import taxes of up to 245 per cent on China, which the Xi Jinping administration countered by slapping 125 per cent tariffs on American goods.
Beijing warned countries on Monday against striking a broader economic deal with the US at its expense, ratcheting up its rhetoric in the trade war between the world’s two biggest economies. “China firmly opposes any party reaching a deal at the expense of China’s interests,” the commerce ministry said in a statement.
Japan, one of Washington’s closest allies targeted by Mr Trump’s sweeping tariffs, has been on the frontline of trade negotiations after being prioritised by the White House. Tokyo last week began negotiations after being hit by a 24 per cent blanket tariff along with an existing 25 per cent duty on automobiles.
Although the blanket tariff on Japanese imports has been paused for 90 days, a 10 per cent universal rate remains in place, as does the duty for cars, a mainstay of Japan’s export-reliant economy. Japan’s automobile sector, which comprises 20 per cent of the total exports, could lose $17bn in export potential in the US duties, according to reports.
Mr Trump on Truth Social claimed both allies made “big progress” even though the nations made little headway other than an agreement to meet again.
Relations between Beijing and Tokyo have been strained in recent years by a range of issues such as territorial disputes to trade tensions and Japan’s release of wastewater from the wrecked Fukushima nuclear power plant.
US treasury secretary Scott Bessent said in a Tuesday speech that the ongoing tariffs showdown against China was unsustainable and he expects a “de-escalation” in the trade war. However, in a separate speech, he cautioned that the talks between the US and China have yet to formally begin.
“I do say China is going to be a slog in terms of the negotiations,” Mr Bessent said, according to a transcript obtained by the Associated Press. “Neither side thinks the status quo is sustainable.”
Despite his high tariffs, Mr Trump said he would be “very nice” to China and not play hardball with the Chinese president. “We’re going to live together very happily and ideally work together,” he said.
The US president said that the final tariff rate with China would come down “substantially” from the current baseline of 145 per cent. “It won’t be that high, not going to be that high,” Mr Trump added.
