Japan announced on Saturday that it has made “progress” in ongoing discussions aimed at easing the tariffs imposed by the United States, but cautioned that a definitive agreement remains elusive.
As one of America’s closest allies and largest investors, Japan is subject to the baseline 10 percent US tariffs applied to most nations, alongside higher levies on key exports such as automobiles, steel, and aluminum.
Earlier this year, President Donald Trump also unveiled an additional 24 percent “reciprocal” tariff targeting Japan, though its implementation was paused until early July alongside similar measures on other countries.
Tokyo has consistently called for the complete removal of all tariffs announced by the Trump administration.
Speaking in Washington following the fifth round of talks, Japan’s trade envoy Ryosei Akazawa said, “We have made further progress toward an agreement, but a point of agreement has not yet been reached.”
Akazawa expressed hope that a deal would be finalized “as soon as possible,” but acknowledged that negotiations may continue past the upcoming Group of Seven (G7) summit scheduled for June 15 in Canada.
Japanese Prime Minister Shigeru Ishiba is expected to meet with President Trump for bilateral talks around the G7 summit, underscoring the high-level attention the tariff dispute is receiving.
The US auto tariffs, set at 25 percent, remain a significant point of contention for Japan, where approximately eight percent of jobs depend on the automotive industry.
Japan’s economy, the world’s fourth largest, shrank by 0.2 percent in the first quarter of 2025, intensifying pressure on Prime Minister Ishiba, who faces upper house elections in July amid growing public concern over the tariffs’ economic impact.
