Trade Talks Stumble: Tariff Tensions Between Japan and U.S. Persist

Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump have hit an impasse in ongoing trade negotiations, as the leaders failed to resolve tariff issues during their 30-minute meeting at the G7 summit in Canada.

Ishiba is keen to see the abolition of a 25% tariff on Japanese cars and a 24% tariff on other Japanese goods, which could have a negative impact on Japan's GDP. Trump's policies could potentially decrease Japan's vehicle export capabilities by $17 billion, posing significant threats to major manufacturers like Toyota and Nissan.

With pressure mounting due to the upcoming national elections, Ishiba faces a tight timeline to secure a deal that might stabilize his political standing. Further talks are anticipated at the NATO summit in The Hague later this month.

(With inputs from agencies.)