Japan's Trade Negotiator Cancels Trip to US Over Trade Deal Issues
Japan's leading trade negotiator Ryosei Akazawa has canceled a planned visit to the United States due to matters concerning the US-Japan trade agreement.
Yoshimasa Hayashi, Japan's Chief Cabinet Secretary, indicated that the trip was intended to address US tariff policies.
"However, during the discussions with the US, it became clear that some aspects needed additional technical deliberation, leading to the cancellation of the trip, and it was agreed that talks would proceed at the administrative level," Hayashi informed reporters.
According to Kyodo News, it is still undetermined whether he will postpone the trip, while reports indicate that Akazawa might travel to Washington as early as next week once the unresolved issues are addressed, citing an unnamed government source.
Also Read: US Tariffs on India an Economic Boon?
Hayashi mentioned that Tokyo will push the US to quickly revise its executive order regarding reciprocal tariffs and request Washington to issue a presidential decree to reduce tariffs on cars and automotive components.
The White House has established an executive order that sets the baseline tariff rate for Japan at 15 percent, yet there is no written confirmation to cut the tariff rate for vehicles from 25 percent to 15 percent.
In July, Akazawa reportedly stated that the US had committed to modifying the executive order concerning reciprocal tariffs on Japan to incorporate a “no-stacking” provision, which would prevent tariffs from exceeding 15 percent. This arrangement would mirror one made with the European Union.
"We have confirmed with the United States that timely and genuine execution of the Japan-US agreement is crucial," he stated.
In a separate statement, Junko Nakagawa, a member of the Bank of Japan's board, noted that while tariff negotiations between the two nations had culminated in an agreement, numerous uncertainties persist.
Also Read: Abu Dhabi's Largest Solar Plant Helps to Permeate Energy Transition
She cautioned that exports and industrial output in Japan are expected to face negative impacts "for the time being," predicting a "reactionary decline" due to front-loading stemming from US tariffs.
Nakagawa also mentioned that corporate profits are anticipated to fall, particularly in the manufacturing sector, "reflecting the impact of reduced export profitability due to increased US tariffs and the slowdown in foreign economies."