BANGKOK – Japanese Prime Minister Shigeru Ishiba has been talking up the benefits of free trade, in the face of a China-U.S. tariff war that threatens the global economy, during a meeting with Vietnam’s top leader To Lam in Hanoi.
The Trump administration’s decision to tax Chinese imports 145% and China’s 125% retaliation on U.S. goods has created what Ishiba called “a complex and multifaceted crisis,” in an article for Vietnam’s Tuoi Tre newspaper.
Cooperation between Japan and Vietnam would contribute to regional stability and prosperity, he wrote in the piece published Sunday as he arrived in the Vietnamese capital for talks with government leaders.
Ishiba and Lam discussed “the impact of U.S. tariffs and China’s retaliatory actions on the global economy” during a meeting on Sunday, Japan’s foreign ministry said.
Ishiba stressed the importance of “maintaining a free and open international order” as well as international free trade.
But both countries face higher U.S. tariffs – 46% for Vietnam and 24% for Japan – unless they can persuade Washington they will reduce their respective trade surpluses. Pressure to cut U.S. exports is providing a further incentive for both countries to find markets other than America for their goods.
Japan and Vietnam signed a free trade agreement in 2008. Japan was the fourth largest exporter to Vietnam last year, shipping US$21.6 billion of goods. Vietnam sent $24.6 billion worth of products to Japan, also its fourth largest export destination.
Vietnam has also proved an attractive manufacturing base for Japanese companies, some of whom shifted operations from China when the country was hit by heavy U.S. tariffs in 2018 during the first Trump administration.
Around 2,000 Japanese companies have set up operations in Vietnam and Ishiba met executives from some of those firms including Canon, Denso Manufacturing and MHI Aerospace as he toured a Hanoi industrial park Sunday, listening to their concerns about the impact of higher tariffs.
Regional security will also be on Ishiba’s agenda as he meets with Prime Minister Pham Minh Chinh on Monday.
The two will discuss a unified response to China’s increasingly assertive territorial claims in the East and South China Seas. China and Japan have clashed over China’s claims to the Senkaku, or Diaoyu, islands. Vietnam and China have also faced off over contested territory in the Paracel, or Xisha, and Spratly, or Nansha, islands.
Japan wants to “further strengthen security cooperation,” in the face of China’s “unilateral attempts to change the status quo by force,” Kyodo news quoted Ishiba as saying as he boarded the flight to Hanoi.
Ishiba heads to Manila on Tuesday, where he is expected to cover a similar agenda of trade and regional security when he meets Philippine President Ferdinand Marcos Jr.
Edited by Taejun Kang and Stephen Wright.
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