Japan reports progress in US trade talks but no tariff agreement yet

By Al Mayadeen English
Source: Agencies
Today 11:26

Japan says progress has been made in US trade talks, but no deal yet to lift Trump-imposed tariffs, including painful auto levies, ahead of the G7 summit.

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Ryosei Akazawa, newly appointed Minister in charge of Economic Revitalization, arrives at the prime minister's office Tuesday, Oct. 1, 2024, in Tokyo (AP Photo/Hiro Komae)

Japan announced on Saturday that it is making progress in ongoing trade talks with the United States but pointed out that no final agreement has been reached regarding the tariffs imposed by President Donald Trump.

Despite being a key US ally and one of its largest investors, Japan remains subject to a 10% baseline tariff along with higher duties on automobiles, steel, and aluminium.

In early April, Trump declared an additional 24% reciprocal tariff on Japanese imports. However, that measure was temporarily paused, along with similar tariffs on other countries, until early July.

Tokyo has called for the removal of all tariffs introduced by Trump. During the fifth round of negotiations, Tokyo's trade envoy Ryosei Akazawa stated, “We further made progress towards an agreement,” adding, “We've not been able to find a point of agreement yet.”

Auto tariffs weigh heavily on Japanese economy

Among the most pressing issues for Japan are the 25% tariffs on automobiles. The auto industry accounts for roughly 8% of all employment in Japan, making it a crucial sector that has been significantly affected by US trade measures.

Akazawa, who has been leading the delegation in Washington, said Tokyo remains hopeful that a deal could be finalized “as soon as possible.”

However, it remains uncertain whether a breakthrough will be achieved before the summit of the Group of Seven nations begins on June 15.

Japanese Prime Minister Shigeru Ishiba and Trump are expected to hold bilateral talks on the sidelines of the G7 summit in Canada.

These discussions may prove critical as economic pressures mount in Japan. The country’s economy, the fourth largest in the world, contracted by 0.2% in the first quarter of 2025, adding political pressure on the unpopular Ishiba ahead of upper house elections anticipated in July.