Japan Cancels U.S. Visit Over Tariff Snag
Japan’s chief trade negotiator, Ryosei Akazawa, has canceled a planned trip to Washington meant to conclude talks on a $550 billion investment package tied to tariff relief. The visit was postponed after unresolved details in the agreement remained unsettled.
Investment Deal Linked to Tariff Cuts
The proposed deal, agreed in principle in July, would lower U.S. tariffs on Japanese goods to 15%. In exchange, Japan pledged government-backed investments across multiple sectors. However, issues over profit-sharing, investment structures, and administrative details have delayed progress.
Dispute Over Presidential Order
Japanese officials are pushing the U.S. administration to amend its executive order to prevent overlapping tariff layers, especially on key exports like beef. They are also seeking immediate implementation of the 15% auto tariff cut. While U.S. Commerce Secretary Howard Lutnick has signaled readiness, Tokyo insists on formal changes before moving ahead.
Economic Pressures Add Urgency
Japan is grappling with its sharpest export decline in four years and has revised its annual growth forecast down to 0.7% from 1.2%. Officials have suggested that if sticking points are resolved quickly, Akazawa could reschedule his Washington visit as early as next week.
