Japan-U.S. auto tariff talks are entering a critical stage as Tokyo steps up efforts to shield its automotive sector. Ryosei Akazawa, Japan’s chief trade negotiator and economic revitalization minister, will head to Washington next week. His mission is clear: demand the complete removal of U.S. tariffs on Japanese vehicles and auto parts. Without an agreement, Japan faces a harsh 24% tariff starting in July. These talks may determine the future of Japan’s export economy.
Japan-U.S. auto tariff talks are especially urgent because autos remain a pillar of Japan’s industrial power. President Trump has already imposed 10% tariffs on most nations, excluding Canada, Mexico, and China. Japan, despite being first to initiate talks, still lacks a deal. Now, with time ticking, Tokyo finds itself lagging behind the U.K. and China in progress. This delay increases pressure on Japan’s automakers and policymakers alike.
Mazda’s recent 45.1% profit drop reflects the damage caused by trade uncertainty. The company also postponed its earnings forecast due to ongoing market volatility. Other automakers may follow unless Tokyo secures concessions soon. The Japanese government remains determined to avoid further economic fallout. Meanwhile, Akazawa is under intense pressure to secure results during the Japan-U.S. auto tariff talks.
In return for tariff relief, Japan is offering strategic trade benefits. These include importing more U.S. corn and soybeans and easing inspections on American vehicles. Japan may also provide shipbuilding cooperation, a move seen as goodwill. However, Japan’s agriculture sector remains non-negotiable. With elections looming, lawmakers refuse to risk domestic backlash by allowing more U.S. rice imports.
Akazawa’s visit aligns with Finance Minister Katsunobu Kato’s trip to the G7 summit in Canada. There, Kato will meet U.S. Treasury Secretary Scott Bessent to strengthen Japan’s negotiating stance. Still, few expect a breakthrough before July. Analysts believe the U.S. lacks political urgency to prioritize Japan. Yet Tokyo insists the Japan-U.S. auto tariff talks must end with full tariff removal, or the damage could be lasting.
