Japan Reports Progress but No Deal Yet in US Tariff Talks

Japan has made progress in trade talks with the United States aimed at easing the tariffs imposed by President Donald Trump, but no definitive agreement has been reached yet. Tokyo is subject to a baseline 10 percent US tariff plus higher levies on key exports such as automobiles, steel, and aluminum, with an additional 24 percent reciprocal tariff paused until July. Japan's chief tariff negotiator Ryosei Akazawa emphasized the urgency of reaching a deal ahead of the upcoming Group of Seven summit, where Japanese Prime Minister Shigeru Ishiba is scheduled to meet with President Trump. The auto tariffs, set at 25 percent, are particularly damaging, affecting about eight percent of Japanese jobs, and Japan's economy contracted in the first quarter of 2025, increasing pressure on Ishiba. Japan continues to push for the complete removal of these tariffs while balancing the need to protect national interests and is considering mechanisms to reduce auto tariffs based on contributions to the US auto industry. Talks are ongoing, and officials hope to finalize an agreement soon, although negotiations may extend beyond the G7 summit.