High Stakes: Japan and U.S. Trade Talks Clash at G7 Summit

In a critical meeting at the G7 summit, Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump attempted to make headway on trade discussions, but fell short of reaching a transformative agreement.

The dialogue centered around tariffs that have significant implications for the Japanese economy, with Japan advocating for the removal of a 25% tariff on its vehicles. These tariffs, paused until July 9, risk shaving a percentage point off Japan's GDP, threatening key national interests.

As both countries prepare for further discussions at the upcoming NATO summit, Ishiba faces mounting pressure due to internal political challenges and a looming national election, making successful trade negotiations increasingly urgent for his administration.

(With inputs from agencies.)