Japan and US Engage in Critical Trade Talks Ahead of G7 Summit

Japanese officials confirmed ongoing trade negotiations with the United States, aiming to avert steep tariffs set to take effect in July. Discussions between Japan''s Akazawa and US Commerce Secretary Howard Lutnick spanned 70 minutes, followed by a 45-minute meeting with Treasury Secretary Scott Bessent. Both sides characterized the dialogue as "very in-depth," exploring mutually beneficial terms.

Prime Minister Shigeru Ishiba may meet President TRUMP during the G7 Summit in Canada to finalize an agreement. Japan faces a 24% tariff on exports and seeks protections for its auto industry against additional US levies. Tokyo has proposed increasing imports of US agricultural products and reviewing non-tariff barriers to American car sales.

The nations are also considering collaboration on rare earth magnet and semiconductor supply chains—a sector currently dominated by China. Japan''s strategic pivot aims to reduce reliance on Chinese production while strengthening economic ties with the US.