Progress in Tokyo-Washington Tariff Talks

Japan announced that it is making progress in talks with Washington to ease the tariffs imposed by President Donald Trump on its imports, but indicated that the two sides have not yet been able to find a “point of agreement.”

Trump imposed a 10% tariff on Japan, the same as on all other countries, despite Tokyo being a major ally and largest investor in the United States, in addition to higher tariffs on automobiles, steel, and aluminum.

Trump also imposed a 24% “reciprocal” tariff on Japan, but these were later suspended until early July, along with tariffs from other countries.

Japan is seeking to reduce or eliminate all of the tariffs announced by Trump. During the fifth round of talks, Ryusei Akazawa, Tokyo’s trade envoy, told Japanese reporters in Washington, “We have made further progress toward reaching an agreement.” However, he added, “We have not yet been able to find a point of agreement,” according to AFP. Washington’s 25% tariffs on imported cars are particularly painful for Tokyo, as about 8% of Japanese jobs are linked to the sector. The Japanese economy, the world’s fourth-largest, contracted 0.2% in the first quarter of 2025, increasing pressure on the unpopular Ishiba ahead of the upper house elections expected in July.