Japan hopes good-faith negotiations will buy it some time in U.S. tariff talks

Japan Times

4 hours ago

Negotiating in good faith in tariff talks with the United States could buy Japan some time and delay the implementation of much higher rates, chief tariff negotiator Ryosei Akazawa said.
U.S. Treasury Secretary Scott Bessent said that as long as countries are engaged in "sincere negotiations, there's room for extensions and other possibilities,' Akazawa told reporters after a ruling Liberal Democratic Party meeting Friday.
'We, for our part, are negotiating in good faith. So we understand that things will likely proceed on that basis,' he added.
Japan is subject to 25% tariffs on cars and car parts, 50% on steel and aluminum as well as a 10% baseline tariff that could rise back to 24% if no deal is struck by July 9 — the day when a 90-day grace period expires.
Akazawa said at a news conference earlier in the day that while Japan sees July 9 as a critical juncture, it does not view the date as a hard deadline between the two countries.
'As the prime minister has said, there are numerous national interests — starting with the automotive sector — that Japan must protect,' Akazawa said. 'For each of these interests, we intend to negotiate in a way that ensures they are not compromised, and aim to reach agreements that will benefit both countries.'
His remarks came after Prime Minister Shigeru Ishiba and U.S. President Donald Trump failed to reach an agreement on tariffs or a breakthrough of any kind when they met Monday in Canada, despite repeated suggestions of progress in recent talks over the past few weeks.
'We have been exploring the possibility of reaching an agreement until the very last moment. However, there are still points where our perceptions do not align, and therefore, we have not yet reached a comprehensive agreement as a whole,' Ishiba said after the meeting.
Akazawa has so far made six trips to Washington since tariff negotiations started in April, four of them in as many weeks in the run-up to the Trump-Ishiba meeting during the Group of Seven gathering earlier this week.
Akazawa said he has built a good rapport with his American counterparts, including Bessent and Commerce Secretary Howard Lutnick, which he said could be a positive factor.
'Of course, each of us is responsible for protecting our respective national interests, so even if there's trust or friendliness, negotiations don't come together easily,' he said in reply to a question from The Japan Times.
'That said, as people engage in discussions, mutual understanding of each other's character and personality deepens, and being able to negotiate with someone you regard as trustworthy — I believe that's a very positive thing.'
Akazawa also noted Nippon Steel's successful acquisition of U.S. Steel after an 18-month uphill battle, saying the deal carries enormous significance and is a job well done.
'Speaking as a fellow negotiator engaged in similar talks — I truly want to say, job well done. Reaching an agreement undoubtedly involved tremendous effort, and I sincerely respect that,' he said.
'I believe this is a highly meaningful and significant agreement, not only for the economic relationship but also for the future development of Japan-U.S. ties as a whole.'