Trump to leave G7 summit early due to Middle East situation
KANANASKIS, Canada (Reuters) -- U.S. President Donald Trump is leaving the Group of Seven summit in Canada a day early due to the situation in the Middle East, the White House has announced.
The G7 has struggled to find unity over conflicts in Ukraine and between Israel and Iran as Trump overtly expressed support for Russian President Vladimir Putin and has imposed tariffs on many of the allies present.
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With the imposition of hefty tariffs on imports, Trump has pledged to slash U.S. trade deficits and rejuvenate domestic manufacturing. The United States imports far more than it exports, with Trump strongly believing its negative trade balance is primarily the result of the "unfair" trade practices of other countries. In the case of Japan, Trump and senior officials of his administration have often complained that almost no American cars are sold in the country, blaming the situation on perceived market barriers such as Tokyo's safety and environmental regulations. They have pointed to the low sales volume in Japan as a good example of American manufacturers not being on equal footing with their rivals. Unlike Japan, which maintains a zero-tariff policy on imported passenger vehicles, the Trump administration raised the tariff rate on such vehicles by 25 percent to 27.5 percent in early April. Among the Trump administration's barrage of higher tariffs, the sharp hike is Japan's biggest headache as the automotive industry is a powerful driver of its economy. "Automobiles are truly a major national interest," Ishiba told reporters, suggesting that Trump's resistance to scrapping or substantially lowering the auto tariff remains a key impediment in negotiations. "We will do everything in our effort to protect this kind of national interest." William Chou, deputy director of the Hudson Institute's Japan Chair, said that in light of recent signals from Tokyo and Washington, he sees neither side as being in a rush to make a deal. Chou said that is partly due to their aim of gaining "negotiation leverage." 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KYODO NEWS - 11 hours ago - 11:57 | All, Japan Japanese Prime Minister Shigeru Ishiba said Tuesday that U.S. tariffs are already severely impacting many Japanese firms, including automakers, but reiterated that he will not rush to reach a deal with Washington at the expense of undermining his nation's interests. Speaking at a press conference wrapping up his visit to Canada for the Group of Seven summit, Ishiba said the tariff measures targeting various sectors could have a "serious impact on the global economy both directly and indirectly." Ishiba made the remarks a day after he and Trump failed to agree on what the Japanese leader has called a "package deal" for the mutual benefit of the longtime allies. They ended their talks without having made tangible progress, with Ishiba saying hurdles remain. "We agreed to instruct ministers to continue with negotiations," Ishiba said. "We will never sacrifice our national interests just because we aim for a quick agreement." Bilateral negotiations have been held multiple times at the ministerial level, covering points such as boosting trade, addressing nontariff measures and expanding cooperation in economic security. After Monday's summit, the focus shifts to when the next in-person encounter may be. Ishiba said he plans to visit the Netherlands from June 24 to 26 to attend a NATO summit. Japan is not a NATO member but has been deepening ties with the military alliance, of which the United States is a member. The escalating conflict between Israel and Iran dominated the two-day G7 summit due to its ramifications for the wider Middle East region, home to major oil producers that supply Japan and many other nations. "We will continue to monitor how crude oil and gasoline prices move with a strong sense of urgency," Ishiba said. "I've already instructed officials to consider measures to prevent people's daily lives from being affected in preparation for the possibility that the confusion in the Middle East continues and prices of gasoline and oil products spike," he added. Related coverage: Japan, U.S. fail to reach tariff deal at Ishiba-Trump summit Trump says he sees chance of trade deal with "tough" Japan G7 leaders agree to expand critical minerals cooperation
