Japan Cancels Security Talks Over U.S. Demands

Japan canceled a high-level security meeting with the United States after the Trump administration unexpectedly raised its demand for Tokyo to increase defense spending to 3.5% of GDP, up from the previously requested 3%. The annual '2+2' summit, scheduled for July 1 in Washington, was to bring together top diplomats and defense officials from both countries but was called off following remarks by a senior Pentagon official. Japanese officials were particularly angered by the timing of the demand, coming just before upper house elections. The cancellation comes amid ongoing trade talks, Japan's plans to import billions in U.S.-made semiconductors, and efforts to propose cooperation to stabilize supply chains affected by the U.S.-China trade war. The move is seen as extraordinary by experts and has contributed to financial market volatility. The incident highlights mounting economic and defense tensions between the two allies.