High-Stakes Trade Negotiations: Japan and U.S. Wrestle Over Automobile Tariffs
Japan's top trade negotiator, Ryosei Akazawa, emphasizes the need for tariff concessions on automobiles in a trade deal with the U.S. amid impending 25% tariffs. As negotiations continue, Japan aims to safeguard its economy without compromising its agriculture sector, while U.S. tariff threats heighten economic uncertainty.
Japan's key trade negotiator, Ryosei Akazawa, underscored the necessity of securing tariff concessions for its crucial automotive sector in discussions with the U.S., following President Donald Trump's announcement of 25% tariffs on Japanese goods, effective August 1.
In a 40-minute call with U.S. Commerce Secretary Howard Lutnick, Akazawa conveyed Japan's determination to reach a comprehensive deal, highlighting sectors like expanded trade, non-tariff barriers, and economic security collaboration. Despite Trump's willingness to delay tariffs with acceptable proposals, Akazawa stated Japan's agricultural sector would not be compromised.
The ongoing tariff discussions shifted economic expectations, with uncertainty pushing the dollar to a two-week high against the yen. Market experts suggest these trade tensions could edge Japan toward recession if unresolved, prompting heightened scrutiny with Japan's upper house elections on the horizon.
(With inputs from agencies.)
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