Japan, US Fail to Reach Tariff Deal at G7 Summit

Prime Minister Narendra Modi missed an opportunity to advance a U.S. trade deal after President Donald Trump left the G7 summit early due to Middle East tensions, impacting India’s trade negotiation prospects. Meanwhile, Japanese Prime Minister Shigeru Ishiba and President Trump failed to reach an agreement on tariffs during their meeting at the same summit, with the automobile sector remaining a major sticking point. Despite six rounds of ministerial talks and efforts to strike an interim accord, key differences persist, particularly over U.S. tariffs of 25% on cars and 24% on other imports, which are paused until July 9. Both leaders agreed to continue negotiations, but there is no clear timeline for a deal, raising concerns about the economic impact on Japan’s trade-dependent industries. The stalled talks highlight ongoing tensions between the U.S. and its major trading partners amid a backdrop of global protectionism and shifting trade alliances. Observers note that the outcome of these discussions will be critical in shaping economic relations in the Asia-Pacific region and beyond.