Unlike Before, Negotiations to Take Place Over Two Days
The United States and Japan began their fifth round of tariff negotiations in Washington DC on June 5 (local time). Unlike previous rounds, these negotiations are scheduled to take place over two days. There is analysis suggesting that both sides are gradually narrowing their differences, as Japan has reportedly modified its previous stance and proposed a reduction, rather than an elimination, of automobile tariffs to the US side.
According to NHK, Ryosei Akazawa, Japan's Minister for Economic Revitalization and the Japanese representative, held talks with US Secretary of Commerce Howard Lutnick for about two hours that afternoon. During the meeting, Minister Akazawa is believed to have reiterated Japan's demand for a comprehensive review of tariffs, including itemized tariffs on automobiles and steel, in line with Japan's previous position.
This round of negotiations is drawing attention as it could also influence tariff discussions between South Korea and the United States. While Japan initially insisted on the elimination of automobile tariffs, it is now known to have proposed a tariff reduction instead during these talks.
Regarding President Trump's continued emphasis on reducing the US trade deficit with Japan, it has been reported that Japan has also included the expansion of agricultural imports and improvements to the automobile import system in the discussions. Minister Akazawa is scheduled to hold separate talks on tariff issues with US Treasury Secretary Scott Besant on the following day, June 6.
The 4th US-Japan tariff negotiations held in Washington DC, USA, on the 30th of last month. Photo by Kyodo and Yonhap News.
The US and Japan are accelerating their negotiations, holding talks for three consecutive weeks ahead of the July 9 deadline for the US to impose reciprocal country-specific tariffs.
The leaders of both countries are expected to meet during the Group of Seven (G7) Summit, which will be held in Canada from June 15 to 17, and will seek to reach agreements on certain tariff issues.
However, the negotiation structure is not simple. According to the Nikkei, Minister Akazawa has visited the US for three consecutive weeks because there are three different US counterparts in the negotiations: Treasury Secretary Besant, Commerce Secretary Lutnick, and USTR Representative Greer.
The Nikkei reported, "The positions of the US negotiators differ from one another, making it difficult for Japan to grasp the true intentions of the US," and added, "There is also speculation that they are competing for credit." From President Trump to working-level officials, information sharing is not smooth, making it difficult for Japan to determine how much it should concede.
Meanwhile, since the US recognizes only 'country-specific additional tariffs' as the subject of negotiations, Japan is preparing a variety of proposals targeting this issue.
According to Japanese media, Japan plans to present a "China response package" as a negotiation card, taking into account that the US is targeting China. This package will include cooperation on rare earths, LNG, and semiconductors.
In addition, recognizing that the elimination of automobile tariffs is realistically difficult, Japan is also reported to have proposed a plan to lower tariffs in proportion to domestic production performance in the US.
Japan is pursuing a "differentiated reduction method" that reflects each country's contribution, leveraging the fact that Japanese automakers have high production volumes in the US. The Asahi Shimbun reported, "Within the Japanese government, there is a view that eliminating automobile tariffs is virtually impossible," and added, "Negotiations are underway with tariff reductions in mind to minimize damage."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
