Global trade tensions are heating up as Japanese Prime Minister Shigeru Ishiba prepares for high-stakes talks with US and European Union leaders. According to the Yomiuri newspaper, Ishiba will meet US Treasury Secretary Scott Bessent in Tokyo this Friday. The discussions come just days before an August 1 deadline for a US-Japan trade deal.
Meanwhile, global trade tensions are further complicated by upcoming EU-Japan negotiations. European Commission President Ursula von der Leyen and European Council President Antonio Costa will visit Tokyo around July 23. They plan to sign a new “competitiveness alliance” promoting free trade. This move signals a united front against rising protectionism.
The US-Japan talks follow President Donald Trump’s decision to hike tariffs on Japanese imports to 25%. Bessent’s visit coincides with the US national day at the World Expo 2025 in Osaka. However, he will skip a G20 finance meeting in South Africa, highlighting the urgency of these discussions.
Japan’s chief tariff negotiator, Ryosei Akazawa, will also join the talks. Despite multiple trips to Washington since April, Akazawa has failed to secure a deal. The lack of progress raises concerns about prolonged global trade tensions.
On the EU side, leaders aim to counter US tariffs and China’s rare earth export restrictions. Their proposed alliance emphasizes a “stable, rules-based economic order.” The agreement may also cover rare earth supply chains, natural gas investments, and defense industry cooperation.
These meetings occur during a politically fragile moment for Ishiba. Recent polls suggest his ruling coalition could lose its upper house majority in Sunday’s election. A defeat would weaken his leadership and embolden opposition parties pushing for tax cuts and looser monetary policy.
As global trade tensions dominate discussions, Japan faces mounting pressure to navigate competing demands. The outcomes of these talks could reshape international trade dynamics in the coming months.
