Akazawa discusses various measures to address concern

Akazawa discusses various measures to address concern

Japan's chief tariff negotiator, Ryosei Akazawa, has been actively engaged in discussions with U.S. officials to address the impact of President Donald Trump's tariff hikes on steel and aluminum imports. Akazawa, who is also Japan's economic revitalization minister, has been meeting with U.S. Treasury Secretary Scott Bessent and other officials to explore potential solutions.

During the latest round of negotiations in Washington, Akazawa reiterated Japan's call for the reconsideration of higher import duties imposed by the United States. He emphasized the need for a win-win deal that benefits both nations. The Japanese government is also weighing the possibility of accepting a reduction in tariff rates, despite the U.S. resistance to a full removal of the duties [1].

In addition to tariff discussions, Akazawa has proposed a new mechanism to adjust U.S. auto tariffs. This mechanism hinges on contributions to the U.S. auto industry, such as the number of vehicles Japanese automakers produce domestically in the U.S. and the volume of cars exported from the U.S. to other markets. This strategic move aims to foster a more balanced trade relationship and enhance the presence of Japanese automakers within the American market [5].

The Japanese government is also considering a visit by Prime Minister Shigeru Ishiba to the United States before the G-7 summit in Canada. This visit could lead to a possible meeting between Ishiba and U.S. President Donald Trump, furthering the progress in ministerial-level tariff talks [2].

The appointment of Treasury Secretary Scott Bessent as the head of U.S. trade talks with Japan has heightened speculation among investors that Washington may pressure Tokyo to help weaken the dollar against the yen. This could influence the likelihood of further interest rate hikes by the Bank of Japan, as a weaker dollar could enhance U.S. exports and a firmer yen might help moderate rising import costs that have hurt Japanese consumers [3].

Japan and the United States are making arrangements to hold a meeting between Ishiba and Trump on the sidelines of the G-7 summit in Canada in mid-June, following the fifth round of tariff talks. The meeting is expected to discuss the progress made in the negotiations and potential future steps [4].

References:
[1] https://english.kyodonews.net/news/2025/06/1449b699f526-trumps-steel-tariff-hike-not-raised-in-japan-us-talks-negotiator.html?phrase=moon%20jae%20in&words=
[2] https://www.nippon.com/en/news/yjj2025060200295/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L2N3QM00H:0-japan-picks-economy-minister-akazawa-to-head-trade-talks-with-us/
[4] https://english.kyodonews.net/news/2025/06/7bfd12d12cfb-update2-japan-calls-for-tariff-rethink-in-talks-with-us-commerce-chief.html?phrase=Okinawa&words=
[5] https://www.indexbox.io/blog/japan-proposes-new-mechanism-to-adjust-us-auto-tariffs/