U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba were unable to finalize a trade deal during the G7 summit in Canada, deepening worries about Japan’s economic outlook as tariffs continue to impact vital sectors, especially the automotive industry.
Ishiba and Trump concluded the meeting without reaching a trade agreement, instead choosing to have their negotiating teams continue discussions. Ishiba had aimed to secure a preliminary deal during the talks, but with no breakthrough, the timeline for a potential agreement remains uncertain.
Speaking to reporters, Ishiba acknowledged that disparities remain between the two sides, with no clear timeline for reaching a deal. The stalled progress, despite nearly two months of negotiations, comes at a politically sensitive moment—just weeks before Japan’s upper house election.
President Trump’s sweeping tariffs on goods ranging from automobiles and auto parts to steel and aluminum have sparked growing concern over Japan’s export-reliant economy. Although the U.S. granted Japan and several other nations a 90-day suspension of its so-called ‘reciprocal’ tariffs, PM Ishiba did not confirm whether the topic of an extension was raised during his talks with Trump. This comes as Washington signaled that the pause could be prolonged for countries actively engaged in negotiations.
Ishiba stated that upcoming negotiations would seek to refine terms that serve the interests of both Japan and the United States. He stressed that securing a shift in U.S. tariff policy on automobiles remains a critical priority for Japan’s national interest.
According to The Japan News, Tokyo has put forward a package of proposals, including increased imports of U.S. agricultural products and enhanced bilateral cooperation on economic security, to secure concessions. However, the two sides have struggled to agree on how to restructure tariffs on automobiles, a key reason the Ishiba-Trump talk failed to produce a breakthrough.
Japan and the United States have conducted six rounds of ministerial-level negotiations, but these efforts were unsuccessful to produce any significant breakthroughs before the G7 summit.
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