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Japan’s chief negotiator expressed hopes of reaching a trade agreement with the US in June, even as a media report indicated the two sides remained at odds on the key issue of its car exports.
Ryosei Akazawa said he’d had a frank meeting with US officials, including Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick. The talks — the second in the series — went on for more than two hours.
“We were able to have concrete discussions on topics such as expanding our bilateral trade, non-tariff measures, and cooperation on economic security,” Akazawa said to reporters on Thursday in Washington after the gathering. He added that the next round could come from mid-May onward.
The US proposed a framework under which Washington would maintain its 25% tariffs on Japan’s auto industry, as well as steel and aluminum, the Nikkei newspaper said, citing multiple sources close to the matter. Japan pushed back, saying the negotiations should be comprehensive, the paper said. Tokyo suggested reviewing its non-tariff barriers and expanding imports of US farm products, according to the Nikkei.
Concessions on auto tariffs are especially critical for Japan, as industries related to the auto sector employ about 8% of the country’s workforce. But the US sought to keep talks focused on the wider-ranging so-called “reciprocal” tariffs, which are set to come into effect in July.
Akazawa said he reiterated Japan’s stance that US President Donald Trump’s wide-ranging tariff campaign was “extremely regrettable” while repeating Tokyo’s plea that the tariff measures be revisited.
Meanwhile, a new angle on the talks emerged earlier Friday when Finance Minister Katsunobu Kato hinted at the possibility of citing Japan’s vast holdings of US Treasuries for leverage in discussions, although it’s unclear how serious he was about the idea.
“It does exist as a card,” said Kato, speaking in response to a question on a TV Tokyo program Friday. “Whether or not we use that card is a different decision.”
Kato’s remark struck a different tone from views expressed in April by the ruling party’s policy chief Itsunori Onodera, who said Japan, as an ally to the US, would not intentionally take action against US government bonds.
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