U.S.-Japan Hold Talks on Trade Policies, Tariffs

(MENAFN) Senior officials from the United States and Japan are scheduled to convene this week to negotiate trade policies and tariffs as both nations aim to deepen their economic partnership. Their bilateral trade currently nears $228 billion in goods.

President Donald Trump’s evolving tariff strategies have unsettled international commerce, triggering major trade partners—including the UK earlier this month—to initiate or renew discussions with Washington. China, Japan, and the European Union are anticipated to follow suit.

Although the US and Japan have engaged in initial dialogue, no final agreement has been secured yet. The forthcoming G7 summit in Canada could prove pivotal if the current round of negotiations falls short of a deal.

Trump is slated to meet with Japanese Prime Minister Shigeru Ishiba at the mid-June summit in Canada. Prior to this, Ishiba and Trump have already touched base on economic issues during a telephone conversation, as confirmed by Japan’s Foreign Ministry.

Addressing the press, Ishiba emphasized Japan’s dedication to working with the US to encourage investment and foster job creation.

Data from the International Trade Center indicates that U.S.-Japan trade in goods reached $227.9 billion last year. U.S. exports to Japan accounted for $79.7 billion, while Japanese exports to the U.S. totaled $148.2 billion.

Between January and March 2025, bilateral trade hit $58 billion, comprising $19.7 billion in US exports and $38.3 billion in Japanese exports.

During this period, Japan ranked as the United States’ seventh-largest trading partner.

Breaking down trade by sectors, U.S. petroleum and petrochemical exports led at $3.1 billion in the first quarter, followed by pharmaceuticals ($2 billion), machinery and parts ($1.9 billion), medical technology ($1.8 billion), and aerospace ($1.5 billion).

Japanese automotive exports dominated to the U.S. with $12.6 billion, trailed by machinery and parts at $8.4 billion, electronics at $4.49 billion, and medical technology at $1.8 billion.

On April 2, Trump implemented extensive reciprocal tariffs ranging from 10% to 50%, including a 25% levy on automobiles and an additional 24% tariff on Japanese goods. These measures have fueled concerns over global trade instability, heightened economic uncertainty, and exerted downward pressure on growth and inflation.

Global macroeconomic indicators suggest the tariffs are already affecting market trends amid ongoing negotiations. Japan’s exports in April rose only 2%, falling short of expectations after a 3.9% increase the previous month.

Imports into Japan declined by 2.2%, resulting in an estimated trade deficit of roughly $800 million.

Experts warn that the extra 25% tariff on Japanese vehicles is straining one of Japan’s key economic sectors. They expect the tariffs’ full economic effects to become clearer through upcoming data releases.

MENAFN29052025000045017169ID1109609381