Overview

• Japan's top negotiator, Ryosei Akazawa, is expected to travel to Washington next week for the third round of trade discussions with the United States.
• Prime Minister Shigeru Ishiba reiterated Japan's goal of eliminating tariffs entirely, emphasizing the importance of securing exemptions for automobile and auto-parts exports.
• Japanese officials are alarmed that the recently concluded US-UK trade deal, which retains a 10% baseline tariff, could undermine Japan's negotiating position.
• Japan is considering offering concessions, including increased imports of U.S. corn and soy, shipbuilding cooperation, and revised auto inspection standards, to gain tariff relief.
• Domestic stakeholders and policymakers insist that no agreement is viable unless the 25% tariff on Japanese automobile exports is lifted, given its critical impact on Japan's export-driven economy.