Japan, U.S. Explore Trade Deal Ahead of G7 Summit Amid Tariff Pressure

Japan and the United States are exploring the possibility of a trade agreement, according to Japan’s top tariff negotiator Ryosei Akazawa. Following separate meetings in Washington with U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, Akazawa confirmed the two countries had a "very detailed exchange" during the sixth round of ongoing tariff negotiations.

The talks come at a critical time, as Japan faces the threat of a 24% tariff rate starting in July unless a deal is struck. Tokyo is also urgently seeking to exempt its automakers from a looming 25% U.S. tariff on automobiles, a vital industry for the Japanese economy.

While Akazawa declined to indicate how close the two nations are to reaching a final agreement, he emphasized that any deal would require full approval from both Prime Minister Shigeru Ishiba and U.S. President Donald Trump. The upcoming G7 leaders’ summit in Canada—where Ishiba and Trump are expected to meet—could serve as a key moment for sealing the deal.

However, Akazawa refrained from commenting on whether the summit meeting would yield a breakthrough. “An agreement is only possible when both leaders endorse everything as a complete package,” he said.

Japan is under increasing pressure to secure favorable trade terms as the deadline nears. The outcome of the negotiations could significantly impact Japanese exports, particularly in the automotive sector, which remains a cornerstone of its economy.

The U.S.-Japan tariff discussions are closely watched by global markets and trade observers, especially as Washington continues to adopt a more aggressive trade stance. Whether the two allies can bridge remaining gaps before July remains uncertain, but momentum is building ahead of the high-stakes G7 summit.