Japan to seek 3rd round of trade talks next week: Sources

TOKYO - Japan’s top trade negotiator, Mr Ryosei Akazawa, could travel to Washington as soon as next week for a third round of trade talks with the US, two sources with knowledge of the plans told Reuters on May 15.

The date of his visit was fluid and would depend on how much progress the two countries can make in narrowing differences in staff-level negotiations, one of the sources said on condition of anonymity as he was not authorised to speak publicly.

Japan is considering a package of proposals to gain US concessions that may include increased imports of US corn and soya beans, technical cooperation in shipbuilding, and revision to inspection standards for imported automobiles, the source said.

There is uncertainty on whether the two sides can iron out differences over Japan’s priority, which is to win exemptions from US tariffs on automobile and auto parts – the mainstay of its export-heavy economy.

“We will seek reviews of the range of US tariff measures, such as those on automobiles, auto parts, steel, aluminium, as well as the reciprocal tariffs, that are deeply regrettable,” Mr Akazawa, who is also Minister in charge of Economic Revitalisation, told a news conference on May 14.

On April 2, US President Donald Trump imposed a 10 per cent tariff on all countries except Canada, Mexico and China, along with higher tariff rates for many big trading partners, including Japan, which faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with the US.

Japanese policymakers and ruling party lawmakers have said they see no merit in striking a deal with the US unless a 25 per cent tariff on automobile imports is lifted, given the huge impact the industry has on Japan’s export-heavy economy.

The impact is already evident in Japan’s automobile sector. Mazda reported a 45.1 per cent drop in net profit for the fiscal year that ended in March, and held off on disclosing earnings estimates for the current year through March 2026.

During his second visit to Washington on May 1, Mr Akazawa made a request to US Treasury Secretary Scott Bessent to review the 25 per cent tariff on automobile and auto parts, though the two sides could not reach common ground.

While Japan was the first major economy to start bilateral trade talks with the US, Britain was the first to strike a deal with the Trump administration. China also agreed on a truce with the US in a de-escalation of trade tensions that led to a sharp rebound in global stock prices. REUTERS