Japan-U.S. Tariff Negotiations: Seek Progress with Focus on Specified Issues

Editorial

16:39 JST, May 4, 2025

Japan and the United States have started discussions on specific issues in tariff negotiations. It is hoped that the Japanese government will seek common ground with the United States, with the protection of Japan’s national interests as a basic prerequisite.

Economic revitalization minister Ryosei Akazawa visited the United States to participate in a second round of tariff negotiations with U.S. Treasury Secretary Scott Bessent and other officials. They had in-depth discussions about areas of mutual interest, such as expanding trade between Japan and the United States, reviewing non-tariff measures and cooperation over economic security.

Akazawa reportedly called strongly for the U.S. government to review its reciprocal tariffs and an additional 25% levy on automobiles, among other matters. Currency and defense issues were not on the agenda.

Akazawa was positive about the latest talks, saying, “We made progress toward reaching an agreement as soon as possible.” The two sides likely have confirmed matters such as how to proceed with the negotiations. They plan to intensively hold ministerial-level talks from mid-May.

The Japanese and U.S. leaders may hold a bilateral meeting on the sidelines of the Group of Seven summit in Canada in June. This meeting could mark a milestone. It is crucial to work out the details of an agreement based on the points that have been sorted out.

The Japanese government has scrutinized possible bargaining chips related to non-tariff barriers on automobiles and agricultural products, which are issues of interest for the United States.

In the latest round of talks, Japan is said to have presented proposals for expanding imports of corn and soybeans produced in the United States and for broadening the scope of items eligible for simplified safety inspections to increase Japan’s imports of U.S. vehicles.

Amid a fierce tit for tat of retaliatory tariffs against China, the United States has seen a decline in its agricultural exports. Japan’s expansion of imports is likely to benefit the United States significantly.

Tokyo and Washington may also have discussed increasing Japanese investment in the United States and cooperation in sectors critical to economic security, such as semiconductors and shipbuilding.

The United States appears to be in a difficult situation. After suffering drops in three financial markets, including government bonds, it suspended some of the reciprocal tariffs for 90 days until early July.

The U.S. economy in the January-March period marked negative growth for the first time in three years. Growing public frustration with inflation is also a source of concern.

U.S. President Donald Trump has indicated his intention not to rush to make deals in tariff negotiations with Japan and other countries, saying: “They want us. We don’t need them.”

Such remarks appear to be a tactic to pressure negotiating countries, but they also hinted at his desire to achieve results by reaching early agreements.

However, the U.S. side reportedly insisted that the scope of the negotiations be limited to the additional portion of the reciprocal tariffs, and that levies on automobiles and other items be excluded. This is an unacceptable stance. It is important for Japan to confirm its red line and proceed with the negotiations.

(From The Yomiuri Shimbun, May 4, 2025)