"US and Japan to Hold Fifth Round of Tariff Talks This Week" ... Accelerating Ahead of G7 Summit

Departing Again on the 5th for the Fifth Round of Negotiations

Kyodo News and NHK reported on June 2 that the United States and Japan are expected to hold their fifth round of tariff negotiations later this week in the United States.

Ryosei Akazawa, Japan’s Minister of Economic Revitalization and chief negotiator, who returned to Japan the previous day, is scheduled to depart for the United States again on June 5 and return on June 8. The fifth round of negotiations is expected to take place on June 5-6, Eastern Time in the United States.

From the left, Howard Lutnick, U.S. Secretary of Commerce; Scott Besant, U.S. Secretary of the Treasury; Ryosei Akazawa, Japanese Minister of Economic Revitalization. Yonhap News

NHK reported that Minister Akazawa had originally planned to visit France from June 3 to attend the Organisation for Economic Co-operation and Development (OECD) meeting and hold negotiations with the United States on the sidelines. However, due to a failure to coordinate schedules, he postponed his participation in the OECD meeting.

The United States and Japan are accelerating discussions ahead of a U.S.-Japan summit scheduled to take place during the Group of Seven (G7) summit in Canada from June 15 to 17 (local time). Both countries aim to reach a partial agreement on tariff issues at the summit. Japanese Prime Minister Shigeru Ishiba is also reportedly considering visiting the United States to meet with U.S. President Donald Trump just before the G7 summit.

Previously, on May 30, Minister Akazawa held talks in Washington, D.C., with Scott Besant, U.S. Secretary of the Treasury, and Howard Lutnick, U.S. Secretary of Commerce. While he confirmed that there had been progress in the discussions, he also indicated that reaching an agreement on auto tariffs remains difficult. He stated, "Automobiles are important to us, but it is certain that this is also an area of interest for the United States."

The United States is reportedly maintaining the position that only the additional tariffs imposed on a country-by-country basis (14% for Japan), on top of the uniform reciprocal tariff of 10%, are open for negotiation, and that adjustments to tariffs on specific items such as automobiles, steel, and aluminum are not possible. However, Japan believes that a comprehensive review of all tariffs, including those on automobiles?which account for about 30% of Japan’s exports to the United States?is necessary.

NHK, citing government sources, reported that as negotiations continue, the points that the U.S. side considers important are becoming clearer. However, Japan has not obtained any assurances regarding its request for a review of a series of (tariff) measures. The Japanese government is said to be further analyzing the U.S. position in an effort to find a possible compromise.

Kyodo News observed that "Secretary Besant and others did not mention raising tariffs on steel and aluminum to 50%, double the current rate, during the fourth round of negotiations," and suggested that tariffs on steel and aluminum could become the main focus in the fifth round of talks.