Japan, U.S. Set For Tug-of-War In Tariff Negotiations;Both Sides Under Pressure, But Claim To Be In No Hurry

By Takanori Yamamoto and Michitaka Kaiya / Yomiuri Shimbun Staff Writers

16:41 JST, May 3, 2025

WASHINGTON — After a second round of tariff negotiations on Thursday, Japan and the United States are now set to begin a tug-of-war in ministerial-level talks agreed to be held intensively from mid-May.

Japan intends to seek a review of U.S. tariffs with an eye on reaching a deal as early as June. However, the United States apparently wants to extract concessions from Japan and use the results as a successful case to gain an advantage in tariff negotiations with other countries. Given the domestic circumstances of both countries, the outlook of their tariff negotiations is difficult to predict.

Talks left ‘to chance’

At a press conference following the second round of the talks, economic revitalization minister Ryosei Akazawa offered a positive perspective, saying, “We had frank and constructive discussions and were able to make progress.”

Behind the scenes, however, the outcome was difficult to foresee. The talks were left “to chance,” a senior Foreign Ministry official said.

In government-to-government negotiations, arrangements are usually made at the bureaucratic level before ministerial talks begin. Since U.S. President Donald Trump took office, the Japanese government has sought clues for negotiations by sending officials to Washington, but the U.S. side was apparently not ready, making it difficult for Tokyo to identify negotiators at the administrative level. Given the situation, Japan was forced to have the latest ministerial meeting with the United States, like the previous one, without sufficient preliminary negotiations.

For the second round of talks, Japan prepared bargaining chips, such as a proposal to expand imports of corn and soybeans produced in the United States. However, Prime Minister Shigeru Ishiba had expressed concern to people around him, saying, “I don’t know how the U.S. side will react.”

During the second round of talks, the Japanese and U.S. governments confirmed that they would begin administrative-level talks on Friday. While it is a step forward for the two countries to have set a negotiating framework, it remains to be seen whether fruitful discussions will be held as the Trump administration is said to have few bureaucrats familiar with practical matters.

In addition to the proposal for expanding agricultural imports, Japan also made such proposals as simplifying safety inspections for imported vehicles. However, the U.S. side “didn’t go into any in-depth discussion” on such matters, according to a government source. It is unclear what Trump thinks of the bargaining chips for the negotiations.

“It’s hard to say that we have seen the light for an agreement,” a senior government official said.

Both sides deny hurrying

On the surface, both the Japanese and U.S. governments have stressed that they are not in a hurry in the negotiations.

In a phone interview with a U.S. media outlet on Wednesday, Trump said: “I’m in less of a hurry than you are. We are sitting on the catbird seat. They want us. We don’t need them.”

Ishiba also downplayed hasty negotiations, telling reporters at the Prime Minister’s Office on Friday, “We must not prioritize excessively on reaching a deal quickly in a way that would be detrimental to national interests.”

In reality, however, both sides have their own reasons to rush a deal.

The Japanese government envisages advancing ministerial negotiations in May, with the aim of reaching an agreement between the Japanese and U.S. leaders in mid-June when a Group of Seven summit is scheduled to be held in Canada. The government wants to make use of possible results from the negotiations to boost the ruling parties in this summer’s House of Councillors election.

On the U.S. side, financial markets were in turmoil following Trump’s announcement of “reciprocal tariffs,” pushing his approval rating down. The United States apparently seeks to regain support by obtaining tangible results from the negotiations with Japan and to gain an advantage in tariff negotiations that are underway simultaneously with about 40 other countries. According to a source close to the Japanese government, Washington has expressed its desire to reach an agreement with Japan at an early date.

If the additional portion of the reciprocal tariffs, which are currently suspended, take effect, it would have enormous impact on Japan’s industries. Japan and the United States face tough negotiations with the suspension set to end on July 9.