Japan said it was making “progress” in negotiations aimed at easing tariffs imposed by US President Donald Trump, but warned that the two sides had not yet found “common ground.”
Japan, a key US ally and the country's largest investor, is subject to the same 10% base tariffs imposed on most countries, plus higher tariffs on cars, steel, and aluminum.

In early April, Trump also announced an additional “reciprocal” 24% tariff on Japan. However, he later postponed it, along with similar measures for other countries, until early July, AFP reported.
Japan wants all tariffs announced by the US president to be lifted.

During the fifth round of negotiations, “we made further progress toward an agreement,” Tokyo's trade envoy, Ryohei Akawa, said in Washington.

But he added: “We have not yet been able to find a point of agreement.”

Japanese Prime Minister Shigeru Ishiba and Trump plan to hold bilateral talks during the G7 summit in Canada.

Washington's 25% tariffs on cars are particularly painful for Tokyo, as around 8% of all jobs in Japan are linked to this sector.

The Japanese economy, the world's fourth largest, contracted by 0.2% in the first quarter of 2025. This increased pressure on the unpopular Ishiba ahead of the upper house elections in July. | BGNES