Japan Warns U.S. Tariffs Could Disrupt Global Economy Amid Trade Talks

Japanese Prime Minister Shigeru Ishiba issued his strongest warning yet on Monday, cautioning that escalating U.S. tariffs could disrupt the global economic order. As Japan prepares for high-stakes trade talks with the United States, Ishiba emphasized the importance of understanding both the rationale and emotional drivers behind President Donald Trump’s tariff policies.

Speaking before parliament, Ishiba said Japan remains committed to finding common ground with the U.S. on key issues such as trade and national security. “I am fully aware that what’s happened so far has the potential to disrupt the global economic order,” he noted, adding that Japan is ready to act swiftly to cushion any economic blow, though a supplementary budget is not currently being planned.

The upcoming bilateral talks, set to begin Thursday, are expected to cover a wide range of topics including tariffs, non-tariff barriers, and foreign exchange policies. Tensions have heightened after Trump announced plans to reveal new tariff rates on imported semiconductors within the coming week.

Japanese Economy Minister Ryosei Akazawa, who will lead the negotiations, stated that currency discussions will be handled separately by Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent. Kato assured lawmakers that both nations agree excessive market volatility could negatively impact economic stability.

As Japan seeks to navigate growing trade tensions and protect its export-driven economy, the outcome of these discussions may prove pivotal for global supply chains and economic cooperation. With markets watching closely, Tokyo aims to maintain diplomatic balance while safeguarding national interests in the face of mounting U.S. protectionism.