Japan's Ishiba signals increasing corn imports as part of US trade talks - Reuters

Japan's Ishiba signals increasing corn imports as part of US trade talks - Reuters

Title: Japan's Ishiba Signals Increasing Corn Imports as Part of US Trade Talks

Japanese Prime Minister Shigeru Ishiba has indicated that increasing corn imports from the United States could be part of Japan's strategy in ongoing trade negotiations with Washington. In a recent parliamentary speech, Ishiba emphasized that Japan would not compromise its domestic agriculture industry for the sake of winning U.S. tariff concessions on automobiles [4].

Ishiba suggested that Japan could use corn for non-consumption purposes, such as ethanol fuel or biomass, rather than for domestic consumption. He noted that Japanese soil is not necessarily well-suited for corn production and that the country could benefit from using corn in these alternative ways [4].

The U.S. has been a significant exporter of corn to Japan, with exports totaling $2.8 billion in 2024. This is in contrast to a significant drop in corn exports to China, which fell by 80% [4]. Japan's top trade negotiator, Ryosei Akazawa, has been engaged in working-level consultations with the U.S., with the aim of exempting Japan from U.S. tariffs, including those on automobiles [4].

Ishiba's comments come amidst ongoing negotiations between Japan and the U.S., with the deadline for a potential trade deal fast approaching. The U.S. has imposed a 24% tariff on Japanese automobile exports, which is set to take effect in July unless a deal is reached [1, 2]. This tariff, along with other trade barriers, has significantly impacted the Japanese auto industry, which is a crucial part of the Japanese economy [1, 2].

The U.S. has also implemented a 10% blanket tariff on all goods imported into the country, with some exemptions for the auto industry and certain electronics [5]. These tariffs have led to a significant increase in the U.S. trade deficit, which reached a record level in March [3].

In response to the tariffs, Japan has maintained its stance on seeking the complete removal of U.S. auto tariffs, despite the U.S.-U.K. trade deal that set a 10% low-tariff quota for British vehicle exports [1, 2]. Ishiba has described the U.S.-U.K. deal as a "one model," but has stressed that Japan's trade and investment situations are different from those of the U.K. [2].

As negotiations continue, the potential inclusion of corn imports in the trade talks highlights Japan's strategic approach to addressing the U.S. tariffs. The focus on alternative uses for corn underscores Japan's commitment to maintaining its domestic agriculture industry while seeking favorable trade terms.

References:
[1] https://www.mitrade.com/au/insights/news/live-news/article-3-813655-20250512
[2] https://www.japantimes.co.jp/business/2025/05/11/economy/japan-continues-to-ask-for-auto-tariff-abolition/
[3] https://finance.yahoo.com/news/march-us-trade-deficit-hits-194610091.html
[4] https://finance.yahoo.com/news/japans-ishiba-signals-increasing-corn-024912487.html
[5] https://www.businessinsider.com/what-world-leaders-have-been-saying-about-trump-tariffs-negotiations-2025-5