Japan-US Trade Dispute Enters Critical Phase

Published on 5.22.25

  The ongoing trade tensions between Japan and the US have escalated further, with both sides struggling to reach a mutually beneficial agreement. The US has imposed tariffs on various Japanese goods, including cars, which are a crucial sector for Japan's economy. Japanese policymakers, led by Prime Minister Shigeru Ishiba, have made it clear that they will not rush into a trade agreement with the US, prioritizing their national interests over other nations' progress. This stance was reinforced by the recent visit of top trade negotiator Ryosei Akazawa to the US for further talks with US Trade Representative Jamieson Greer. One of the key sticking points in the negotiations is the 25% tariff on cars imposed by the US, which Japan considers non-negotiable. In an effort to gain concessions from the US, Japan is considering proposals such as revised inspection standards for imported cars. The stalled talks have led to a 90-day trade truce between the two countries, but it remains to be seen whether this will lead to a lasting resolution. The upcoming meeting between Japan's top trade negotiator Yui Katsura and her US counterpart is expected to be crucial in determining the future of bilateral trade relations.

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