Japan confirms ‘in-depth’ talks with US as tariff deadline looms

Japan is scrambling to head off steep new US tariffs, as last-ditch negotiations with President Donald Trump’s administration show few signs of progress. With a crucial tariff pause set to expire on July 9, Tokyo is warning of significant risks to its vital manufacturing sector if a deal cannot be reached.

According to Reuters, Japan’s chief tariff negotiator Ryosei Akazawa held “in-depth exchanges” over the phone with US Commerce Secretary Howard Lutnick on Thursday and Saturday. The Japanese government said in a statement that it would “continue actively coordinating with the US side” in an effort to prevent the higher tariffs from taking effect.

Prime Minister Shigeru Ishiba, speaking on Wednesday, vowed to defend Japan’s national interests, noting that Japan is the largest foreign investor in the United States. As per Reuters, Ishiba’s comments reflect Tokyo’s growing frustration with what it sees as aggressive US demands and limited willingness to compromise.

Trump threatens even higher tariffs

President Trump has repeatedly threatened to increase tariffs far beyond the current 24 per cent level announced in April. This week, Trump criticised Japan for what he described as its reluctance to buy US-grown rice, accusing Tokyo of maintaining unfair barriers. Yet Reuters reports that Japan has in fact imported historically high volumes of US rice in recent months, as domestic prices have surged.

Despite those purchases, Trump has indicated he may bypass further negotiations altogether. According to Reuters, he suggested he could simply send Japan a letter outlining a new tariff rate of 30 or even 35 per cent. The White House declined to comment directly on the possibility of higher duties, referring only to Trump’s public statements. Reuters also noted that Trump said on Friday he had signed letters to 12 countries informing them of new tariff intentions, though he did not identify which nations would receive them.

Japan’s auto industry on the line

Japan’s top priority in these negotiations remains securing an exemption for its automotive sector. As per Reuters, Japanese automakers are already facing a 10 per cent tariff on most exports to the US. On top of that, Washington has threatened an industry-specific tariff of 25 per cent on imported vehicles, a move that would hit Japan’s manufacturers particularly hard.

After nearly three months of negotiations without a breakthrough, Tokyo’s options are narrowing. Japan is one of America’s most important trading partners, and its carmakers are major employers in the US. Yet Reuters reports that Trump has so far shown little inclination to compromise, casting doubt on whether Japan can avoid higher tariffs. Prime Minister Ishiba said his government remained determined to find a solution, but acknowledged the difficulties, stressing the need to protect key national interests even as talks drag on.

An uncertain outlook

With the July 9 deadline fast approaching, the risk of escalation is real. As Reuters reports, Trump has questioned whether a deal is even possible and has publicly floated higher tariff rates. For Japan, failure to secure an agreement could have damaging economic consequences, especially for its automakers and exporters.

Beyond the economic impact, the standoff also threatens to strain the broader US-Japan alliance. As the two sides edge closer to a potential trade war, Japan’s negotiators are under intense pressure to avert a damaging outcome while managing an increasingly unpredictable White House.

(With inputs from the agencies)