US-Japan Conclude Fifth Round of Tariff Talks: "No Agreement Reached"

Coordination Underway Ahead of Mid-June Summit
US Treasury and Commerce Secretaries Hold Separate Meetings with Japanese Ministers

The United States and Japan have held negotiations for three consecutive weeks in an effort to reach a consensus on tariff and trade talks ahead of a summit expected in mid-June, but they have not been able to find common ground.

The two countries conducted their fifth round of tariff negotiations over two days from the previous day to the 6th (local time) in Washington DC, but reportedly failed to narrow their differences.

The US-Japan negotiations are drawing attention as a barometer for US-South Korea talks, given that Japan, like South Korea, has a large manufacturing sector, a significant share of exports to the US, and a high level of security dependence on the United States.

The scene during the 4th negotiation held in Washington DC, USA, on the 30th of last month (local time). From the left, Howard Lutnick, US Secretary of Commerce; Scott Besant, US Secretary of the Treasury; Ryosei Akazawa, Japanese Minister for Economic Revitalization. Photo by Yonhap News

According to Kyodo News and NHK, Ryosei Akazawa, Japan’s Minister for Economic Revitalization and the official in charge of tariffs, told reporters after the negotiations, “We have once again confirmed the positions of Japan and the United States, and I believe discussions toward an agreement have progressed further,” but added, “We have not yet found common ground.” Kyodo News commented, “There still appear to be differences between the positions of Japan and the United States,” and explained, “It is still unclear whether a partial agreement on tariffs between the leaders of Japan and the United States, which the Japanese government is aiming for in mid-June, will be reached.”

Minister Akazawa stated that he would continue to work energetically toward coordination, with an eye on the US-Japan summit to be held on the sidelines of the G7 Summit in Canada from June 15 to 17. He emphasized that Japan would continue to demand a review of a series of tariff measures, including reciprocal tariffs and item-specific tariffs. He said, “If tariff measures are reviewed, I naturally do not intend to wait until the G7 Summit for an agreement,” but also noted, “Negotiations could continue up to the time of the G7 Summit.” However, regarding the future negotiation schedule, he said, “Nothing has been decided,” and declined to elaborate further.

Minister Akazawa met with Howard Lutnick, US Secretary of Commerce, the previous day, and on this day held separate meetings with Scott Besant, US Secretary of the Treasury, and Secretary Lutnick to discuss tariff issues.

Japan has presented a variety of “negotiation cards” in an effort to persuade the United States, which is reportedly maintaining the position that only the additional country-specific tariffs (14% for Japan) on top of the uniform 10% reciprocal tariffs are negotiable. In addition to expanding agricultural imports and improving the automobile import system, Japan appears to have explained to the US side a “China response package” that bundles cooperation on rare earths, liquefied natural gas (LNG), and semiconductors. It has also been reported that Japan, revising its previous position, has proposed a reduction rather than elimination of automobile tariffs to the US side.