TMTPOST -- The   Japanese   government seems   reluctant to   make concessions   amid the ongoing trade talks with the United States.

Credit：Xinhua News Agency

Japanese Prime Minister Shigeru Ishiba on Wednesday   pledged   to defend   national   interest in   the face of U.S. President Donald Trump ’ s recent   threat of higher tariffs. Japan is different from other countries as it   is   the largest investor in the United States   and one of the biggest   creator of jobs there,   Ishiba said at   a public debate with opposition party leaders.  

"With our basic focus being on investment rather than tariffs, we ’ ll continue to protect our national interest while working to reduce the US trade deficit with Japan," Ishiba   said.

Wednesday saw   a report   suggested Japan and U.S.   sparred over auto tariffs   during their meetings   these   weeks.

The conversations might start   shifting from easing   the recent tariffs   by the Trump administration toward extra punitive measures   if Japan and   U.S. could   not work out an agreement   soon, U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer   warned   in   their meeting with Japanese   counterparts   in late May, the   Wall Street Journal   cited people familiar   with the matter.   One   of the penalties   that   U.S. officials reportedly indicated is a   cap   on the number of vehicles Japan could export   to the   country, also known   as voluntary export   restraint ( VER ) , a self-imposed trade restriction where   the government of a country limits the amount of a certain good.  

However, the Japanese officials insisted they are   not going to   accept the 25% auto tariffs   remain   in place   under   the possible trade deal. From the start, they had told the Americans they wouldn ’ t agree to any deal that preserves Trump ’ s 25% automotive tariff, the report   quoted sources, adding that impasse continues.

Japan now   faces a 25%   U.S.-imposed tariff on automobiles and auto parts, and a 50% tariff on steel and aluminum. Despite prior ministerial-level rounds of negotiations, little progress had been made in the country's attempt to seek tax exemption.

  Ishiba   stressed   the importance of safeguarding national interests   following Trump ’ s repeated   threat of   hefty tariffs,   ramping up pressure   for a deal   ahead the July 9 deadline.

In an interview with Fox News broadcast on Sunday, Trump said he doesn ’ t think he will need to extend the deadline and his administration would notify countries that they have to face higher tariffs unless they strike deals with the U.S.  

Trump in the interview singled   Japan out,   implying   he would impose 25%   auto tariffs   for   unfair auto   trade.   He said the administration ’ s letter   to Japan   would   go like "Dear Mr. Japan, here ’ s the story. You ’ re going to pay a 25   percent tariff on your cars." "They won ’ t take our cars, right? And yet we take millions and millions of their cars into the United States. It ’ s not fair," Trump added.

Trump   on Monday suggested the U.S. government will skip negotiations and directly inform   Japan about its   planned tariff rates   due to the unfair trade of rice.   "To show people how spoiled Countries have become with respect to the United States of America, and I have great respect for Japan, they won ’ t take our RICE, and yet they have a massive rice shortage," Trump said in   a post on his social media Truth Social.   "In other words, we ’ ll just be sending them a letter, and we love having them as a Trading Partner for many years to come,"   Trump continued in the   post.

A   Japanese government spokesperson   on   Tuesday   said the country will not sacrifice the agricultural   sector as part   of trade talks with U.S.   "We are not thinking about doing anything that would sacrifice the farm sector," Chief Cabinet Secretary Yoshimasa Hayashi told a press conference.   

Trump later   Tuesday   expressed his skepticism   over a   possible   trade deal   with the U.S. ally. "I ’ m not sure we ’ re going to make a deal. I doubt it with Japan, they ’ re very tough. You have to understand, they ’ re very spoiled," Trump said.

Trump   said he would force Tokyo to   "pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan."    The   tariff   rates of 30%   or 35%   would notably be higher than the 24% duties on Japan that Trump   announced   on April 2, a date he   proclaimed   "Liberation Day".