Japan, U.S. ministers reached trade agreement in mid-June: sources
Japan's chief negotiator reached an agreement with U.S. Commerce Secretary Howard Lutnick in mid-June on a deal offering massive Japanese investment in the United States in exchange for a reduction in tariffs, sources close to the matter said Saturday.
Over the following month, Japan focused on convincing U.S. President Donald Trump through Lutnick of the advantages of the agreement, with the proposal of expanding imports of U.S.-grown rice used as the final bargaining chip.
The trade deal, announced by Trump on July 23, includes tariffs on Japanese cars set at 15 percent -- lower than the 27.5 percent that was to have been levied -- in exchange for $550 billion of Japanese investment in the United States.
During the course of the negotiations, which spanned around three months from mid-April, Japan identified Lutnick as the only person who could communicate "directly and on a deep level" with Trump due to their close friendship of over 30 years, and directed its efforts on him, according to one of the sources.
Ryosei Akazawa, Japan's chief tariff negotiator, built trust with Lutnick not only through in-person talks but also through dozens of phone calls, the source said.
Believing that Lutnick placed a high priority on economic security amid China concerns, Japan emphasized its willingness to contribute to strengthening U.S. domestic supply chains and eventually reached an understanding with him.
Trump, however, maintained a hardline stance even in late June, venting frustration that Japan does not import significant amounts of American cars and rice.
"I'm not sure we're going to make a deal. I doubt it," he had said, while demanding additional concessions in exchange for lowering tariffs.
The tide turned on July 22 immediately following Japan's upper house election. A sudden meeting was arranged for the following day between Trump and Akazawa, who was in Washington for an eighth round of talks.
Akazawa and Lutnick began to "rehearse" in preparation for the talks, with Lutnick suggesting that a total investment of $400 billion be proposed in the expectation that Trump would ask for $500 billion. A board was prepared by U.S. officials to clearly show Trump how much Japan would investment.
But Trump demanded even more, leaving Akazawa no choice but to agree to $550 billion.
A senior official of the prime minister's office acknowledged that the deal does not align with World Trade Organization rules or the Japan-U.S. trade agreement that took effect in January 2020, but also conceded that Trump "is a president who genuinely believes in protecting his country through tariffs."
© KYODO
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NHK
23 minutes ago
- NHK
More than 20% of NASA employees opt to leave agency: US media
US media outlets say nearly 4,000 employees have applied to leave the NASA space agency under a program by President Donald Trump's administration to cut federal spending. CBS News and other media have reported that 3,870 staff, or over 20 percent of NASA's workforce, have applied to leave. The agency employs about 18,000 people. The reports said the deadline for applications for the deferred resignation program was on Friday. The Trump administration says NASA will face a 24-percent year-on-year reduction in the budget for the fiscal year that begins in October. About 360 current and former employees of the agency published an open letter on Monday last week to voice their opposition to the spending cuts. The "Voyager Declaration" says, "The last six months have seen rapid and wasteful changes which have undermined our mission and caused catastrophic impacts on NASA's workforce."
Asahi Shimbun
an hour ago
- Asahi Shimbun
Thai and Cambodian leaders to meet in Malaysia for talks to end deadly border dispute
A Cambodian military vehicle carries rocket launcher in Oddar Meanchey province, Cambodia, on July 26 as border fighting between Thailand and Cambodia entered its third day, heightening fears of an extended conflict. (AP Photo) BANGKOK--Thai and Cambodian leaders will meet in Malaysia for talks to end hostilities, a spokesperson for the Thai prime minister's office said Sunday. This comes following pressure from U.S. President Donald Trump to end a deadly border dispute, now in its fourth day, which has killed at least 35 people and displaced more than 218,000. Jirayu Huangsap said Acting Prime Minister Phumtham Wechayachai will attend Monday's talks in response to an invitation from Malaysian Prime Minister Anwar Ibrahim 'to discuss peace efforts in the region.' Anwar has been acting in his capacity as this year's chair of the 10-member Association of Southeast Asian Nations. Cambodian Prime Minister Hun Manet late Sunday night on several social media platforms confirmed his participation as well. 'I will lead (the) Cambodian delegation to attend a special meeting in Kuala Lumpur hosted by Malaysia, co-organized by the United States and with participation of China,' he said. China is a close ally of Cambodia, and had early in the fighting urged the two nations to resolve their differences peacefully, but Hun Manet's statement appeared to be the first mentioning a Chinese link to Monday's planned talks. Trump posted on the Truth Social social network Saturday that he spoke to the leaders of Thailand and Cambodia and suggested he would not move forward with trade agreements with either country if the hostilities continued. He later said both sides agreed to meet to negotiate a ceasefire. Cambodian Prime Minister Hun Manet said earlier Sunday his country agreed to pursue an 'immediate and unconditional ceasefire.' He said Trump told him that Thailand had also agreed to halt attacks following the U.S. president's conversation with Phumtham. Phumtham thanked Trump and qualified Thailand's position, saying it agreed in principle to a ceasefire but stressed the need for 'sincere intention' from Cambodia, the Thai Foreign Ministry said. U.S. State Department spokesperson Tammy Bruce on Sunday said Secretary of State Marco Rubio had spoken with the foreign ministers of both Thailand and Cambodia urging them 'to de-escalate tensions immediately and agree to a ceasefire.' Her statement added that the U.S. 'is prepared to facilitate future discussions in order to ensure peace and stability' between the two countries. The fighting flared Thursday after a land mine explosion along the border wounded five Thai soldiers. Both sides blamed each other for starting the clashes. Both countries recalled their ambassadors and Thailand closed its border crossings with Cambodia, with an exception for migrant Cambodian workers returning home. Despite the diplomatic efforts, fighting continued Sunday along parts of the contested border, with both sides refusing to budge and trading blame over renewed shelling and troop movements. Col. Richa Suksowanont, a Thai army deputy spokesperson, said Cambodian forces fired heavy artillery into Surin province, including at civilian homes, early Sunday. He said Cambodia also launched rocket attacks targeting the ancient Ta Muen Thom temple, claimed by both countries, and other areas in a bid to reclaim territory secured by Thai troops. Thai forces responded with long-range artillery to strike Cambodian artillery and rocket launchers. Battlefield operations will continue and a ceasefire can only happen if Cambodia formally initiates negotiations, he added. 'Cambodian attacks remain irregular and may constitute violations of rules of engagement, posing further risk to border communities,' said the Thai military's daily summary of the fighting issued Sunday night. 'The situation remains highly tense, and it is anticipated that Cambodia may be preparing for a major military operation prior to entering negotiations,' it said. Cambodian Defense Ministry spokesperson Lt. Gen. Maly Socheata accused Thai forces of escalating the violence with bombardment of Cambodian territory early Sunday, followed by a 'large-scale incursion' involving tanks and ground troops in multiple areas. 'Such actions undermine all efforts toward peaceful resolution and expose Thailand's clear intent to escalate rather than de-escalate the conflict,' she said. Thailand on Sunday reported a new death of a soldier, bringing its total number of fatalities to 22, mostly civilians. Cambodia said 13 people have been killed, though it was unclear if that included Lt. Gen. Duong Samnieng, whose death in combat was announced Sunday. More than 139,000 people in Thailand have evacuated to safe locations and over 79,000 people fled from three Cambodian provinces. Many border villages are mostly deserted, with many schools and hospitals shut. Pichayut Surasit, an air-conditioning technician in Thailand, said the sudden outbreak of fighting meant leaving his work in Bangkok to return home to protect his family. 'I didn't have the heart to continue with my work when I heard the news. I wanted to come back as soon as possible, but I had to wait until the evening,' he said. Now at a shelter in Surin housing some 6,000 evacuees, Pichayut worries for his wife and twin daughters, hoping the conflict will end soon so they can return to their home in Kap Choeng district, one of the hardest-hit by shelling. Bualee Chanduang, a local vendor who moved to the same shelter Thursday with her family and pet rabbit, is counting on swift negotiations to end the violence. 'I pray for God to help so that both sides can agree to talk and end this war,' she said. At the Vatican, Pope Leo XIV said he was praying for all those affected by war in the world, including 'for those affected by the clashes on the border between Thailand and Cambodia, especially the children and displaced families.' The 800-kilometer (500-mile) frontier between Thailand and Cambodia has been disputed for decades, but past confrontations have been limited and brief. The latest tensions erupted in May when a Cambodian soldier was killed in a confrontation that created a diplomatic rift and roiled Thailand's domestic politics.
an hour ago
INTERVIEW: PayPay Bank to Expand Small-Lot Corporate Loans
News from Japan Economy Jul 28, 2025 12:18 (JST) Tokyo, July 28 (Jiji Press)--PayPay Bank President Tomohito Takusari has indicated that the Japanese online bank aims to develop its corporate operations into a core business area on par with its services for individual customers. The bank, which belongs to the LY Corp. group, the operator of the Line messaging app and the Yahoo internet portal, plans to expand small-lot loans to member stores of the group's PayPay settlement service and to small businesses and sole proprietors operating outlets on the Yahoo! Japan Shopping e-commerce website, according to Takusari. "We hope to provide our services by leveraging our point of contact close to the foundations of (our customers') operations," he said in an interview with Jiji Press. PayPay Bank currently offers a service in which corporations can take on loans of up to 10 million yen without having to visit branches of the lender. While partner consumer finance company Aiful Corp. is responsible for loan guarantee, PayPay Bank is feeding data to a loan screening system developed by the bank using machine learning. "We aim to improve our screening ability so that we can provide loans without guarantees," Takusari said. [Copyright The Jiji Press, Ltd.] Jiji Press
