Japan invokes national interest as tariff talks with US struggle

Tokyo, Japan - Japanese Prime Minister Shigeru Ishiba said on Wednesday he was determined to protect his country's national interests as trade negotiations with the U.S. struggled and President Donald Trump threatened even higher tariff rates on the Asian ally.

"Japan is different from other countries as we are the largest investor in the United States, creating jobs," Ishiba said in 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 U.S. trade deficit with Japan," he said.

Trump on Tuesday cast doubt on a possible deal with Japan, indicating that he could impose a tariff of 30% or 35% on Japanese imports - well above the 24% rate he announced on April 2 and then paused until July 9.

Tokyo has yet to secure a trade deal after nearly three months of negotiations as it scrambles to find ways to get Washington to exempt Japan's automakers from 25% automobile industry-specific tariffs, which are hurting the country's manufacturing sector.

Japanese broadcaster TV Asahi reported on Wednesday that Japan's tariff negotiator Ryosei Akazawa was organising his eighth visit to the United States as early as this weekend.

Ishiba said during the debate that Japan would continue to create jobs in the U.S. while protecting domestic industries.

"If auto sales to the U.S. are bound to drop, we will boost domestic demand and diversify export destinations to protect Japanese industries," Ishiba said.

The deadlock in the trade talks could hurt the ruling coalition in a key upper house election on July 20, although analysts say easy concessions could also undermine their support.

Yoshihiko Noda, the leader of the largest opposition Constitutional Democratic Party of Japan, criticised Ishiba's tactics, accusing his administration of failing to set a clear framework for negotiations and being unable to convince the U.S. side on Japan's contributions.

(Reporting by Makiko Yamazaki and Satoshi Sugiyama; Editing by Kim Coghill and Kate Mayberry)