U.S. Dollar is now used in nearly 50% of global payments, the highest level in more than 12 years

Japan will not continue yielding to U.S. demands in pursuit of a tariff agreement, Prime Minister Shigeru Ishiba said on Monday, delivering some of his most assertive comments yet since President Donald Trump began pressing Tokyo for greater access to Japan’s auto and agriculture sectors as part of his broader trade agenda.

“If Japan gives in on everything, we won’t be able to uphold our national interest,” Ishiba told parliament.

Tokyo is currently crafting its strategy for a second round of negotiations, expected before the end of April, after its chief trade negotiator held initial talks with U.S. counterparts in Washington last week. Specific American demands remain unclear, but Trump has regularly criticized Japan over the scarcity of U.S. vehicles in the country.

Senior U.S. officials have also cited tariffs on agricultural imports—such as rice—as examples of protectionist barriers.

The outcome of the talks is politically critical for Ishiba. Automobiles represent Japan’s top export, while the country’s farmers are a key political base for his Liberal Democratic Party, which is preparing for national elections in July and facing sagging public approval.

A poll released Monday by the Asahi Shimbun showed support for Ishiba’s cabinet at just 30%, with disapproval at 56%.

In parliament, Ishiba strongly defended Japan’s agricultural protections.

“We have been safeguarding Japanese agriculture through various tools, including tariffs and minimum access commitments,” he said. “We must continue to protect these sectors—and, of course, consumer safety as well.”

Still, Japan will need negotiating leverage as it seeks relief from the U.S.’s blanket 24% tariff, which was temporarily reduced to 10% for 90 days earlier this month. Like other countries, Japan also remains subject to a 25% tariff on car, steel, and aluminum exports.

Over the weekend, Japanese media reported that Tokyo may consider increasing imports of American rice and soybeans, and possibly relaxing safety regulations on imported cars, as part of proposals to advance talks.

U.S. automakers have long claimed that non-tariff barriers hinder their access to Japan’s market, although Ishiba on Monday expressed skepticism about the appeal of left-hand drive American cars in a country where vehicles drive on the left.

Ishiba did not detail any specific offers Japan might make, but he ruled out sacrificing the nation’s farmers by lowering protections on their goods to secure a deal lifting the auto tariff.

Trump has also raised concerns about Japan’s financial contribution to U.S. military bases in the country, including during a meeting last week with Japanese negotiator Ryosei Akazawa. On Monday, Ishiba stated that Tokyo would not simply agree to increase its share of the costs for hosting American forces.

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