Japan is making a bold move. It wants the US to drop its auto tariffs immediately — and it’s not afraid to say it directly. The clock is ticking. The G7 Summit in Canada is just days away. Japanese officials are trying hard to cut a deal with the US to avoid more damage to their industry.
Why Auto Tariffs Are a Huge Issue for Japan
For Japan, auto tariffs aren’t a small problem — they’re a huge deal. The US put a 25% tariff on Japanese car imports and a 50% tariff on steel and aluminum. That’s a big blow because nearly a third of Japan’s exports to the US come from the car industry.
This tariff already cuts profits. Toyota, Nissan, and Honda are estimating a $19 billion drop this fiscal year. That’s not pocket change — it’s a huge financial shock to companies and workers across the country.
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Japan Pushes Back in Trade Talks
The main person leading these talks for Japan is Ryosei Akazawa. He met US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent in Washington. The meetings were tough, but constructive.
Akazawa made it clear that Japan wants a deal soon. His main message was simple: Lift the auto tariffs and find a path forward that benefits both. He insisted this is key for a healthy US-Japan relationship.
This is all happening just days before the G7 Summit in Canada, where Prime Minister Shigeru Ishiba and President Donald Trump may meet. If a deal isn’t made by then, it could undermine their ability to show unity on the world stage.
Akazawa said negotiations sometimes lift “like the morning fog”—suddenly, a deal appears. But it’s hard to say when and if this will happen.
Japan’s Appeal to Trump
Japan is not weak in this situation. It highlights its role as a huge investor in the US. Japanese companies employ many Americans and create a lot of jobs. Toyota, Nissan, and Honda all have factories across the USA.
Furthermore, the White House recently opened the door for Nippon Steel’s takeover of US Steel. That’s a sign the US values Japanese investment and wants to find a way forward.
As the G7 Summit nears, the US and Japan are in a delicate spot. Japan wants fairness and stability. The US wants to protect its industry. The question is — can they find a win-win?
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