The Japan US tariff negotiations have entered a decisive phase as both countries race to resolve trade disputes before the G7 summit. Economic revitalization minister Ryosei Akazawa traveled to Washington for a second round of meetings with U.S. Treasury officials. Talks focused on reciprocal tariffs, non-tariff barriers, and deeper economic security cooperation. With time running short, both governments are working to bridge differences on longstanding economic issues. The Japan US tariff negotiations could reshape bilateral trade policy for years to come.
At the heart of the disagreement is a 25 percent U.S. tariff on Japanese cars, a levy Tokyo strongly opposes. Akazawa described the tariff as economically damaging and pushed for immediate reconsideration. Although Japan ruled out defense and currency topics, it offered several concessions to move talks forward. These included boosting U.S. corn and soybean imports and easing safety checks on American cars. Japan US tariff negotiations remain tense as core issues still divide the two sides.
Japan also signaled flexibility on non-tariff barriers, particularly concerning food and auto imports—top U.S. priorities. The U.S. wants more access for its exports while seeking assurance on long-term economic cooperation. Talks are now exploring ways Japan could invest more in U.S. strategic sectors such as semiconductors and shipbuilding. Clean energy investment is also under discussion as both countries seek to fortify supply chains. Japan US tariff negotiations must now balance national interests with the global economic agenda.
The Biden administration faces internal economic pressure after a recent GDP dip and growing voter frustration over inflation. In response, Washington temporarily paused some tariffs until early July, though it excluded car levies. President Trump, preparing for the summit, warned that the U.S. won’t compromise on everything. His comment, “They want us. We don’t need them,” signals a firm posture heading into final negotiations. Japan US tariff negotiations have become a test of political will and diplomatic skill.
Although both sides claim progress, Tokyo remains firm about defending its core industries and market access. Kishida and Trump are expected to meet during the G7, offering a possible breakthrough. If an agreement emerges, it could mark a turning point in bilateral economic relations. Still, unresolved issues around auto tariffs could derail any broader deal. The Japan US tariff negotiations will continue through May, with each session shaping the path toward either resolution or further tension.
