Japan looks to use U.S. shipbuilding cooperation as card in tariff talks

Japan has proposed cooperating with the United States in the field of shipbuilding, as part of the two countries' economic security partnership, sources have said.

The Japanese side also plans to send industry ministry officials to an energy-related conference to be held in Alaska, where a liquefied natural gas development project is planned, informed sources said Friday.

By highlighting its cooperative stance toward the United States, the Japanese government hopes to fend off tariffs imposed by U.S. President Donald Trump's administration.

Japanese economic revitalization minister Ryosei Akazawa, the country's chief negotiator in tariff negotiations with the U.S., held a third round of talks in Washington on Friday. It was not immediately clear if Akazawa had conveyed the shipbuilding idea to his counterparts.

As part of that plan, the government will launch measures to revive the domestic industry, which has long been in decline, the Yomiuri Shimbun daily reported Friday. It will support the private sector in the construction and repair of shipbuilding docks and in starting businesses overseas.

Japan aims to use the move as a negotiating card in the ongoing tariff talks, as the Trump White House is keen on the shipbuilding issue. China has taken an overwhelming share of that global market, triggering growing economic security concerns.

The government will reportedly include specific measures in its Basic Policy on Economic and Fiscal Management and Reform, also known as the “big-boned policy,” and secure a necessary budget.

It will also support domestic investment, technology development and establishing data infrastructure in the shipbuilding industry through the Economic Security Promotion Law, the Yomiuri reported.

As for possible Japan-U.S. cooperation, the government is considering a “Japan-U.S. fund for reviving the shipbuilding industry.”