Japanese PM Heads to U.S. in Bid to Avert Tariffs Ahead of G7 Summit

Japanese Prime Minister Shigeru Ishiba is planning a crucial visit to the United States shortly before the upcoming G7 summit in mid-June. His main goal? Prevent harsh new tariffs from the U.S., especially those targeting steel and aluminum exports.

🔹 Japan Faces Tariff Threats of Up to 50%

If talks with Washington fall through, Japan is staring down the barrel of a 24% tariff hike set to begin next month. On top of that, existing tariffs already include a 25% duty on automobiles, steel, and aluminum, and a 10% base import tax. President Donald Trump recently warned that tariffs on Japanese steel and aluminum could double to 50%, a scenario Prime Minister Ishiba has labeled “a national crisis.”

Negotiations Continue: Akazawa Back in Washington

Tokyo has repeatedly sent its chief negotiator, Ryosei Akazawa, to Washington in an effort to defuse tensions. According to Yomiuri Shimbun, Akazawa is scheduled to return to the U.S. later this week, at which point Ishiba's visit will be decided.

While U.S. officials have yet to officially confirm any increase to 50%, Akazawa stated that the matter was not discussed in recent talks, though both sides agreed to resume negotiations in Canada from June 15 to 17.

🔹 U.S. Open to Dialogue, but Demands Remain

U.S. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent described their latest talks with Japan as “sincere and constructive.” However, they emphasized the need to address both tariff and non-tariff barriers, encourage investment, and enhance cooperation on economic security and shared strategic interests.

Tokyo Calls for Full Tariff Elimination

Speaking to reporters on Friday, Akazawa reiterated that Japan continues to demand full elimination of U.S. tariffs—including those imposed on cars, steel, and aluminum.

“If our requests are met, we might reach a deal. But if not, it will be difficult to proceed,” he said at the Japanese embassy in Washington.

Earlier in May, PM Ishiba called for a zero-tariff agreement, but Tokyo has also made it clear that it won’t rush into any deal that would hurt Japan’s core industries, particularly automotive.

Some Japanese officials remain optimistic that a deal can be finalized by Trump’s birthday on June 14—perhaps as a symbolic gesture of goodwill.

US Steel Acquisition in the Spotlight

In parallel with tariff talks, Tokyo is closely monitoring Nippon Steel’s bid to acquire US Steel. While Akazawa declined to comment on the ongoing negotiations, he confirmed that Japan is following the situation closely, pending an official statement from the U.S. government.

Trump told reporters on the same day that the acquisition deal is still under review, awaiting his approval. He praised Nippon Steel’s commitment and said the deal could become “the largest investment in Pennsylvania’s history—not just in steel.”

💬 Interesting fact: If the U.S. raises tariffs to 50%, it could spark retaliatory measures across Asia and disrupt global supply chains in both the auto and metals industries.

#TRUMP , #Tariffs , #Japan , #worldnews , #TradingCommunity

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