Tariff Talks With US Still 'in a Fog,' Japan's Trade Negotiator Says

Japan’s talks with the US over trade and tariffs “remained in a fog,” the country’s top trade negotiator Ryosei Akazawa said on Friday.

Tokyo has been unable to achieve a trade deal with Washington and fulfill its goal of convincing President Donald Trump to scrap a 25% tariff on cars from Japan, and a 24% tariff on other Japanese imports that has been paused until July 9, despite efforts by both sides to reach an agreement.

July 9 is an important date but not a deadline for bilateral trade talks, Akazawa told a news conference. Commentators have said an Upper House election in Japan on July 20 – and conflict in the Middle East – reduce the chance of the two sides reaching a deal till after the ballot.

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“We’re looking for the possibility of a deal in ministerial-level negotiations. But the outlook remains in a fog,” he said on the prospects of clinching an agreement.

His remarks are likely to fuel fears that the bilateral trade talks could drag on possibly until after an expected upper house ballot on July 20.

Analysts say the election makes it difficult for Prime Minister Shigeru Ishiba to make concessions on the politically sensitive issue of agriculture imports.

The tariffs are already hurting Japan’s fragile economy.

Japan’s exports fell in May for the first time in eight months as big automakers like Toyota were hit by sweeping US tariffs, clouding the outlook for an economy heavily reliant on car shipments to the United States.