Japan urges U.S. to drop auto tariffs ahead of G7 summit

In the most recent round of trade negotiations held in Washington, Japan urged the United States to remove tariffs on automobiles and auto parts, as both countries work toward reaching a bilateral agreement ahead of the Group of Seven (G7) summit in Canada.
Japan’s chief trade negotiator Ryosei Akazawa met with U.S. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent on Friday to advance discussions on key economic issues. The meeting came shortly after a phone conversation between Prime Minister Shigeru Ishiba and President Donald Trump, during which both sides agreed to accelerate efforts toward a mutually beneficial trade deal.
“To achieve an agreement that is mutually beneficial, we engaged in very in-depth discussions with the two ministers and explored the possibility of reaching an agreement,” Akazawa told reporters following the sixth round of negotiations. “We further deepened discussions on issues such as expanding bilateral trade, non-tariff measures, and cooperation on economic security.”Japan is seeking a formal written commitment from the U.S. that it will not be subject to additional tariff increases in sectors such as automotive exports. According to local media, including the Mainichi newspaper, this assurance is viewed as critical to ensuring trade stability.The U.S. has imposed a 25% tariff on imported vehicles and a 50% duty on steel and aluminum. In addition, a suspended 10% across-the-board tariff on other Japanese exports is scheduled to rise to 24% on July 9 unless an agreement is reached.
Automobiles and auto components account for roughly one-third of Japan’s exports to the United States, making them a central element of the trade discussions. Industry estimates project that current tariff structures could significantly affect annual earnings across Japan’s major automobile manufacturers, including Toyota Motor Corp., Honda Motor Co., and Nissan Motor Co.
Akazawa stated that Japan continues to prioritize a comprehensive agreement that addresses both tariff and non-tariff issues. He has already briefed Prime Minister Ishiba on the status of the talks and may accompany him to the G7 summit, where a potential announcement could be made depending on the progress of discussions.In a separate development, the U.S. administration has taken steps toward approving Nippon Steel Corp.’s acquisition of United States Steel Corp. A proposed national security agreement has been submitted to both companies outlining terms that would allow the transaction to proceed.Trade and Industry Minister Yoji Muto welcomed the development, stating, “The Japanese government believes that this investment will strengthen the ability of the Japanese and U.S. steel industries to generate new innovation and lead to the strengthening of the close partnership between Japan and the U.S.

”The agreement on steel investment is being interpreted as a signal of the U.S. government’s openness to Japanese capital contributing to domestic industrial capacity and employment.As of now, no changes have been announced regarding the July 9 deadline. While Treasury Secretary Bessent had earlier suggested that some flexibility could be offered to countries engaged in good-faith negotiations, no extension was proposed during the latest discussions, according to Akazawa.Commenting on the possibility of a breakthrough, Akazawa noted the unpredictable nature of international negotiations. “Negotiations can sometimes reach an agreement suddenly, or they can unexpectedly drag on for a long time. It’s like being caught in fog. Sometimes the fog suddenly lifts in the morning. Sometimes it never seems to clear up no matter how much time passes,” he stated.

(Business Correspondent)