Japan, U.S. Continue Fifth Round Tariff Talks Ahead of G7 Summit

Japan and the United States have made some progress in their fifth round of tariff negotiations but have yet to reach a full agreement, with talks continuing amid looming deadlines and the upcoming Group of Seven summit. Japan's chief negotiator, Ryosei Akazawa, emphasized the detrimental impact of U.S. tariffs on Japanese autos, auto parts, steel, and aluminum, some of which have doubled to 50%, and reiterated that Japan finds the tariffs unacceptable. While Japan seeks the elimination of U.S. tariffs as a prerequisite for a deal, it is considering compromises if the tariffs are significantly reduced, particularly focusing on the 25% tariff on automobiles. Both sides are exploring broader cooperation, including defense equipment purchases, shipbuilding technology, and agricultural imports, as potential bargaining chips. Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump are expected to meet at the G7 summit in mid-June, though Japan is open to finalizing an agreement before the summit if terms can be agreed upon. The negotiations remain delicate as Japan balances urgent economic needs with protecting its national interests amid the Trump administration's reciprocal tariff regime.