Recent negotiations between Japan and the US indicate a strong interest in reaching agreements on trade and investment issues.
Negotiations Continued
On Saturday, Japan's chief tariff negotiator Ryosei Akazawa held a 30-minute phone call with US Commerce Secretary Howard Lutnick. The Japanese government confirmed that discussions focused on the terms of a possible trade agreement. On Friday, Akazawa also had in-person talks with Lutnick for about 70 minutes and with Treasury Secretary Scott Bessent for 45 minutes.
G7 Plans
The Japanese government expressed hope that Prime Minister Shigeru Ishiba and US President Donald Trump might meet on the sidelines of the G7 summit starting Sunday in Canada. The talks also covered conditions necessary to finalize an agreement that would benefit both parties. Japan is facing a 24% tariff on its exports that will take effect in July unless a deal is reached.
Nippon Steel and US Steel Deal
US President Donald Trump recently approved Japan's Nippon Steel's $14.9 billion bid for US Steel. The deal faced significant criticism over national security concerns, but it is anticipated to create $11 billion in planned investments by 2028. Reports also suggest that some key positions will be reserved for Americans.
The ongoing negotiations between Japan and the US reflect both parties' efforts to navigate existing tariffs and strengthen bilateral economic ties, exemplified by the Nippon Steel deal.
