U.S.-Japan Tariff Tensions: Bilateral Talks in Turmoil

The Japanese government announced "in-depth exchanges" between Japan's tariff negotiator Ryosei Akazawa and U.S. Commerce Secretary Howard Lutnick. The discussions came amid impending tariff hikes set to begin after a temporary 24% tariff pause expires on July 9.

President Trump hinted at imposing even steeper tariffs, following his criticism of Japan's limited imports of U.S. rice and alleged unfair automotive trade practices. Japan, however, reported significant rice imports from the U.S. amid rising domestic prices. Trump's consideration of a 30% to 35% tariff is raising concerns as Japanese Prime Minister Shigeru Ishiba pledges to protect national interests.

With no deal in sight, Japan is under pressure to secure relief from hefty automobile tariffs threatening its manufacturing sector. The ongoing negotiations underscore the fragile nature of U.S.-Japan trade relations as Japan remains a top U.S. investor.

(With inputs from agencies.)