Economy
Japan and U.S. Move Toward Trade Agreement Tokyo Urges Tariff Removal Before July
May
Japan and U.S.: Japan’s trade envoy, Ryosei Akazawa, stated that negotiations with the Trump administration have taken a promising turn. While avoiding concrete details, he suggested that both nations could reach a formal agreement as early as June. Akazawa met Friday in Washington with U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
New Round Scheduled Before G7 Summit in Canada
Another round of talks is set to take place before the G7 Summit, scheduled for June 15–17 in Canada. Japanese Prime Minister Shigeru Ishiba and President Donald Trump may meet on the sidelines of the event. “We’ve agreed to accelerate coordination toward a possible summit in June,” Akazawa stated.
Japan Demands Elimination of Tariffs on Cars and Metals
Tokyo insists on a full review of tariffs imposed earlier this year, including a 25% duty on cars, steel, and aluminum, and a 10% duty on other imports. Without a deal, these tariffs could rise to 24% in July. “The auto industry is critical for Japan, but also for the United States,” Akazawa emphasized.
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Trade Data Shows Negative Economic Impact
Japan is already feeling the effects: in April, car exports to the U.S. declined, and the economy shrank in the previous quarter. A Japanese auto executive reported losses of one million dollars per hour due to the tariffs.
U.S. Stresses Trade Barriers and Economic Security
Secretary Bessent pushed for the removal of barriers, encouraged investment, and called for stronger cooperation on economic security. Akazawa highlighted the strategic importance of critical minerals and semiconductors, proposing resilient supply chains through bilateral complementarity.
Defense and Currency Issues Excluded from Talks
Defense and currency matters were deliberately excluded from the trade discussions. A spokesperson for Japan’s Foreign Ministry explained that these issues are handled through separate diplomatic channels.
Ishiba Under Political Pressure Due to Tariff Impact
With national elections in July, the Ishiba administration approved an emergency fiscal package to support affected businesses and households. The potential meeting with Trump before the G7 and growing cooperation between Nippon Steel and U.S. Steel could positively influence negotiations.
