President Donald Trump is set to meet with Japanese Prime Minister Shigeru Ishiba over the Trump administration's sweeping auto tariffs that have rocked the global auto industry with uncertainty.
What Happened: Ishiba will head to the G7 summit in Canada's Alberta province, following talks between the two sides on Friday, Reuters reported on Sunday.
The meeting would be only the second in-person encounter between the two leaders, the report suggests. Ishiba has been the Prime Minister since October 2024, succeeding his predecessor, Fumio Kishida.
The report suggests that the meeting is crucial for Ishiba's government domestically. "I will make every possible effort to reach an agreement that benefits both Japan and the United States," he told reporters.
The two are expected to discuss Trump's 25% auto tariffs on Japanese car manufacturers, among other things. Some analysts cited in the report, however, say that failing to reach an agreement could prove to be beneficial for Ishiba at home.
"If it goes badly, it could even be seen as a positive for Ishiba, standing up to Trump and standing up for his country when he’s under assault." Data mentioned in the report suggests the tariffs could shave off over 0.9% of the country's total GDP.
Why It Matters: The news comes as Trump's auto tariffs continue to cast a shadow of uncertainty over the global auto industry. The president recently suggested that he may hike the tariffs to boost domestic production.
"I might go up with that tariff in the not too distant future. The higher you go, the more likely it is they build a plant here," the president said in a press event at the White House.
Tariffs have caused automakers to grapple with uncertainty and several companies have pulled their 2025 earnings guidance, citing the volatility of regulations.
Despite this, Mary Barra, CEO of General Motors Co. (NYSE:GM), has backed the tariffs, calling them a tool to help level the playing field for U.S. automakers.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read Next:
- Chrysler, Jeep Owner Stellantis To Move Some Auto Production Into US Amid Trump Tariff Uncertainty
Photo courtesy: Joey Sussman / Shutterstock.com
