Despite election results, Japan says it is seeking U.S. trade deal by Aug 1
"I don't have (such a concern)," Akazawa told reporters at an international airport near Washington upon his arrival, when asked whether the Japanese governing coalition's huge loss in Sunday's upper house election will make the stalled bilateral negotiations even more difficult.
"I believe that both Japan and the United States have a desire to reach some kind of agreement by then," Akazawa said, referring to the deadline when a pause on Trump's so-called reciprocal tariffs is due to expire.
Akazawa arrived in Washington for his eighth round of in-person negotiations with U.S. cabinet members. He departed Tokyo just a day after the national election, in which Japanese Prime Minister Shigeru Ishiba's ruling coalition lost its majority in the House of Councillors.
The defeat, resulting from the Japanese public's frustration over rising living costs, left the coalition led by his Liberal Democratic Party with a minority in both chambers of parliament, as it failed to secure a majority in last year's election for the more powerful House of Representatives.
If there is no deal with the Trump administration by the deadline, Japan is set to face a country-specific tariff of 25 percent on its goods, which would be a further drag on its economy.
The higher tariff would come on top of auto and other hefty sector-based duties that took effect earlier this year in the name of protecting U.S. national security.
During his visit through Wednesday, Akazawa said he will seek to hold talks with U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer if their respective schedules allow.
In a CNBC interview before Akazawa's arrival, Bessent said, "Our priorities are not the internal workings of the Japanese government. Our priorities are getting the best deal for the American people," when asked about the election outcome's potential impact on the ongoing talks.
During a press conference in Tokyo on Monday, Ishiba, who has vowed to stay on as prime minister, highlighted that Japan is the world's largest investor and job creator in the United States.
"Therefore, or should I say precisely because of this, we have been saying investment rather than tariffs and making various efforts in a bid to gain the understanding (of the United States)," Ishiba said.
Trump announced sweeping tariffs on April 2, targeting dozens of countries with which the United States runs trade deficits, before pausing them for 90 days to provide time for talks.
But the Trump administration has extended the pause to Aug. 1 amid little progress in its talks with major trading partners, including Japan, South Korea and the European Union.
Since the launch of Japan's talks with the United States in April, Akazawa's team has prioritized persuading the administration to review the auto tariff, which Trump raised by 25 percentage points to 27.5 percent in April.
The team has presented a set of proposals aimed at reducing Japan's trade surplus with the United States, including increasing imports of American corn and liquid natural gas.
But the United States has shown no signs of budging on the new auto tariff rate, with Trump instead ramping up pressure on Japan by repeating his frequent criticism that the key U.S. ally has been reluctant to import American cars and agricultural products.
© KYODO
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Nikkei Asia
15 minutes ago
- Nikkei Asia
Japan PM Ishiba's approval rating hits new low of 32%: Nikkei poll
Japanese Prime Minister Shigeru Ishiba is expected to make a final decision on his future as early as August. (Photo by Uichiro Kasai) Nikkei staff writers TOKYO -- The approval rating of Japanese Prime Minister Shigeru Ishiba's cabinet hit 32%, the lowest since his government's October 2024 launch, in the latest Nikkei/TV Tokyo survey. On the most suitable person to be the next prime minister, former Minister in charge of Economic Security Sanae Takaichi and Agriculture Minister Shinjiro Koizumi, both of Ishiba's ruling Liberal Democratic Party, tied for first place at 20% each. They were followed by Yuichiro Tamaki, leader of the Democratic Party For the People, at 9%. Ishiba came in fourth at 6%.
Nikkei Asia
an hour ago
- Nikkei Asia
Trump, EU's von der Leyen to meet on Sunday to clinch trade deal
GLASGOW, Scotland (Reuters) -- European Commission President Ursula von der Leyen is set to meet with U.S. President Donald Trump on Sunday to clinch a trade deal for Europe that would likely see a 15% baseline tariff on most European Union goods but end months of uncertainty for EU companies. U.S. and EU negotiators huddled in final talks on tariffs facing crucial sectors like cars, steel, aluminum and pharmaceuticals before the meeting, which is expected at 15:30 GMT on Trump's golf course in Turnberry, western Scotland. U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday, and EU Trade Commissioner Maros Sefcovic arrived on Sunday morning. Lutnick told "Fox News Sunday" that the EU needed to open its markets for more U.S. exports to convince Trump to reduce a threatened 30% tariff rate that is due to kick in on Aug. 1. "The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set?" Lutnick said, adding that the EU clearly wanted -- and needed -- to reach an agreement. A separate U.S. administration official was upbeat that a deal was possible. "We're cautiously optimistic that there will be a deal reached," the official said, speaking on condition of anonymity. "But it's not over till it's over." The EU deal would be a huge prize, given that the U.S. and EU are each other's largest trading partners by far and account for a third of global trade. Ambassadors of EU governments, on a weekend trip to Greenland organized by the Danish presidency of the EU, held a teleconference with European Commission officials on Sunday to agree on the amount of leeway von der Leyen would have. In case there is no deal and the U.S. imposes 30% tariffs from Aug. 1, the EU has prepared countertariffs on 93 billion euros ($109 billion) of U.S. goods. EU diplomats have said a deal would likely include a broad 15% tariff on EU goods imported into the U.S., mirroring the U.S.-Japan trade deal, along with a 50% tariff on European steel and aluminum for which there could be export quotas. EU officials are hopeful that a 15% baseline tariff would also apply to cars, replacing the current 27.5% auto tariff. Some expect the 27-nation bloc may be able to secure exemptions from the 15% baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the U.S., a long-standing offer, and boost investment in the United States. Trump told reporters there was "not a lot" of wiggle room on the 50% tariffs that the U.S. has on steel and aluminum imports, adding, "because if I do it for one, I have to do it for all." The U.S. president, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that von der Leyen was a highly respected leader and he was looking forward to meeting with her. He said there was a 50-50 chance that the two sides could reach a framework trade pact, adding that Brussels wanted to "make a deal very badly." The EU now faces U.S. tariffs on more than 70% of its exports, with 50% on steel and aluminum, an extra 25% on cars and car parts on top of the existing 2.5% and a 10% levy on most other EU goods. EU officials have said a "no-deal" tariff rate of 30% would wipe out whole chunks of transatlantic commerce. A 15% tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods. Seeking to learn from Japan, which secured a 15% baseline tariff with the U.S. in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for Sunday's meeting. For Trump, aiming to reorder the global economy and reduce decades-old U.S. trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the $550 billion deal with Japan. So far, he has reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days."
Kyodo News
5 hours ago
- Kyodo News
SDF request led to nuclear threat scenario in Japan-U.S. exercise
TOKYO - The Japanese Self-Defense Forces strongly urged the U.S. military during a joint command post exercise last year to mirror any nuclear threat made by China with one of its own, government sources said Sunday. The United States ultimately complied with the request in the simulation exercise that envisioned a potential invasion of Taiwan by Beijing, raising concerns that Japan's push to invoke nuclear deterrence could exacerbate tensions between the United States and China. The request, the first of its kind in a Japan-U.S. joint exercise, was based on Japan's policy of reliance on the U.S. nuclear umbrella for protection, suggesting that both Japanese government and SDF officials see Chinese nuclear saber-rattling as a real possibility in the event of a Taiwan contingency. The Defense Ministry did not respond to a request for comment. Japan and the United States named China as a hypothetical enemy for the first time in the computer simulation exercise "Keen Edge" in February last year. During the exercise, the U.S. Navy set up temporary bases in the Nansei island chain in the Kagoshima and Okinawa prefectures in the initial stages of a Taiwan contingency, with the SDF providing logistical support. Later in the drill, the scenario assumed that China hinted at the use of nuclear weapons against the United States and Japan, but the U.S. side initially did not take any measures due to concerns over escalating the situation further, according to the sources. Adm. John Aquilino, commander of the United States Indo-Pacific Command, ultimately acquiesced to repeated requests by Gen. Yoshihide Yoshida, chief of the SDF Joint Staff, for "the United States to counter with nuclear threats to defend Japan." Neither Beijing nor Washington used nuclear arms in the simulation. The two countries announced last December their first guidelines on "extended deterrence," often described as the U.S.'s commitment to using its full range of nuclear and conventional capabilities to defend Japan amid China's growing military activities and North Korea's missile and nuclear development.
