Japan braces for tough G7 talks, PM Ishiba says it won’t accept ‘quick fix’ US trade deal

With just days to go before the G7 leaders’ summit in Canada, Japanese Prime Minister Shigeru Ishiba has sent a strong message to Washington: Tokyo is open to progress, but will not be pressured into a rushed trade agreement that sacrifices national interest.

“If there’s progress before I meet the president, that’s in and of itself good,” PM Ishiba said at a press conference in Tokyo on Thursday. “But what’s important is to achieve an agreement that’s beneficial to both Japan and the US. We won’t compromise Japan’s interests by prioritising a quick deal,” he added, as quoted by Bloomberg.

The remarks come amid mounting speculation that PM Ishiba could meet US President Donald Trump on the sidelines of the G7 summit in Quebec, set to begin Sunday. However, PM Ishiba clarified that no final schedule had been set for a bilateral meeting.

The Japanese leader also met opposition party chiefs earlier in the day, calling for cross-party unity in what he described as a “national crisis” caused by rising US tariffs.

Japan–US trade tensions: From tariffs to economic tremors

The latest standoff stems from a renewed trade offensive launched by President Trump in April 2025. Citing national security concerns, Washington imposed sweeping tariffs on automotive imports from Japan, targeting a sector that makes up nearly 19 per cent of Japan’s exports to the US, according to World Bank data.

Trump’s executive order slapped a 25 per cent tariff on Japanese cars and parts, dealing a major blow to Japan’s manufacturing exports, which heavily rely on the US market. In 2024, Japanese exports to the US totalled over $135 billion, making the US Japan’s second-largest trading partner after China, according to Japan’s Ministry of Finance.

Japan responded cautiously but firmly. The Ministry of Economy, Trade and Industry (METI) warned that the tariffs could tip the country into a technical recession, especially as industrial output and consumer sentiment remain fragile after a weak first quarter in 2025.

Tokyo’s top trade envoy, Ryosei Akazawa, is now preparing to fly to North America this week to continue negotiations and seek an exemption or partial rollback of the new levies. Analysts say Japan is navigating a delicate balance, seeking to avoid a trade war while defending its strategic economic sectors.

“Japan cannot afford to be seen as conceding too much ahead of the G7,” said Noriko Hama, professor of economics at Doshisha University, speaking to Nikkei Asia. “Yet there’s immense pressure to keep US relations stable, given Japan’s deep reliance on US defence guarantees and export markets.”

G7 summit: An opportunity, but no illusions

The Group of Seven summit, hosted in Charlevoix, Canada, from June 15–17, will bring together the leaders of the US, UK, France, Germany, Italy, Japan, and Canada. With global trade tensions escalating—not just between the US and Japan, but also across the US-EU and US-China corridors—this year’s summit is expected to focus heavily on economic cooperation and supply chain resilience.

While no formal US–Japan meeting has been confirmed, diplomatic officials say that both sides are leaving the door open for a last-minute bilateral. Trump has been publicly bullish about achieving “fairer deals” with key trading partners and may use the G7 platform to push Japan toward tariff concessions or increased market access for US agricultural goods.

But Japanese officials remain cautious. “We are not going to negotiate under pressure or media spectacle,” said a senior trade ministry official, speaking on condition of anonymity to Reuters. “We seek a rules-based outcome with mutual respect.”

Outlook: Cautious, calm, but pressure mounts

As the G7 summit approaches, Tokyo appears determined to show resolve, welcoming diplomatic progress but resisting any deal made in haste.

Whether President Trump and PM Ishiba meet or not, the coming days will test Japan’s ability to manage diplomacy with its largest security ally while fending off economic headwinds at home.

With its domestic economy already under stress and businesses lobbying for relief, Japan’s stance underscores a deeper recalibration in US–Japan trade ties—one where mutual interest must now contend with political imperatives on both sides.

(With inputs from the agencies)