News On Japan

Japan-U.S. Tariff Talks: 'Slowly Rushing to an Agreement'

TOKYO - Japan and the United States held a second round of negotiations over tariffs, with discussions lasting 130 minutes. Economic Minister Akazawa described the talks as substantive, yet many officials believe the outcome hinges on the trajectory of U.S.-China relations.

Japan is taking a strategic posture described as “slowly but urgently,” a phrase that has drawn attention for its paradoxical tone. What exactly does it mean? We take a closer look.

The phrase suggests that Japan is deliberately not rushing into a conclusion, while still aiming to reach an agreement by June. Rather than outlining concrete details, Japan is carefully monitoring how other countries like India and South Korea are navigating their own negotiations with the United States, assessing where it can yield and where it must hold firm.

U.S. Treasury Secretary Bessent appears close to striking a deal with India, and with South Korea facing a presidential election, Washington is likely accelerating those talks. Japan, however, is signaling that it is not in a hurry. It aims to take cues from South Korea’s cooperation with the U.S., particularly how far Seoul is willing to compromise on tariff reductions.

From the perspective of former bureaucrats and lawmakers, the U.S. approach remains rooted in “America First”—a stance not unique to the Trump administration. This has been evident in recurring issues like U.S. demands for Japan to adopt American standards for electric vehicle charging ports and rear signal lights. For example, while Japan uses orange rear turn signals to avoid confusion with brake lights, the U.S. continues to promote its red-only standard.

One symbolic incident cited by Trump involved a claim that if a car hood dented from a head impact, it would fail safety tests—an assertion debunked by fact-checkers. In reality, Japan’s testing involves dropping a head-like object from two meters to assess pedestrian protection in collisions. The U.S. has no equivalent standard.

Japan has long tried to explain such differences in regulatory values, holding to its own principles since the 1980s. Negotiators stress that it is crucial to stand firm, while also understanding which American officials wield real influence. Japan has been sending frequent delegations to Washington, aiming to read "the American wind"—a metaphor for identifying key power brokers and aligning strategy accordingly.

This became particularly important after White House National Security Advisor Walton faced effective dismissal following mishandling of classified material and inappropriate use of personal email for official duties. Another key figure, Ilon Skuth, known for his symbolic hat-switching to represent policy shifts, is also reportedly stepping back amid tension with the administration and declining Tesla shares.

At present, Bessent is seen as the most influential figure in the Trump administration’s trade team. But with as many as five competing factions within the administration, Japan must constantly reassess who holds sway. Moreover, reading “China’s wind” is equally vital.

Akazawa has emphasized that Tokyo is watching U.S.-China relations closely, as Japan’s trade ties with China remain deep. U.S.-China tariffs have surged to 145% and 125%, respectively. Recently, Trump has hinted at softening tariffs, but China is taking a hard line—halting imports of U.S. aircraft and tightening rare earth exports, which are vital to both military and high-tech sectors. While other nations can mine rare earths, China dominates processing and refining, and the U.S. currently relies on China for about 70% of its supply.

China, too, appears to be seeking a major deal but is reluctant to concede. Last month, the Chinese Ministry of Foreign Affairs posted a Cold War-era video quoting Mao Zedong: "We will never surrender until we achieve complete victory over America." While intended for domestic audiences, it reflects the broader standoff.

For Japan, striking the right balance is crucial. Lawmakers warn that if U.S.-China tensions escalate further, Japan’s economy—and global markets—could suffer. Yet from a security standpoint, stronger U.S. attention to China may promote stability in East and Southeast Asia. Japan’s diplomatic posture could influence the region’s balance of power.

As a middle power, Japan is also being closely watched by ASEAN, the EU, and other stakeholders to see how it positions itself between the two superpowers. In other words, while Japan is reading the wind from Washington and Beijing, the world is now reading Japan’s wind in return.

Source: YOMIURI

News On Japan
POPULAR NEWS

Transport disruption from Typhoon No. 7 (Mekkhala) widened further on June 26, with airlines extending weather-related ticket handling to Tokyo airports for June 27 and JR East announcing planned suspensions and reduced service on several conventional lines as the storm moves along Japan’s Pacific side.

As of 4 p.m. on June 26, Typhoon No. 7 was near Amami Oshima and moving northeast while Typhoon No. 8 was over waters south of Japan, with the two storms forecast to approach Tokai and Kanto in succession on June 27 and bring two waves of heavy rain, raising the risk of flooding, landslides and river overflows from western Japan to the Tokyo region.

Japan advanced to the knockout stage of the World Cup after a 1-1 draw with Sweden on June 25, finishing second in Group F and setting up a Round of 32 clash with Brazil in Houston.

A powerful earthquake with a maximum seismic intensity of upper 6 struck off Iwate Prefecture at around 7:30 a.m. on June 25, shaking parts of Aomori Prefecture and leaving Hachinohe, which was hit by a similarly strong quake last December, facing fresh damage.

A powerful earthquake registering a maximum intensity of 6 upper on Japan’s seismic scale struck Aomori Prefecture at around 7:30 a.m. today. According to the Japan Meteorological Agency, the epicenter was off the coast of Iwate Prefecture, with a depth of about 50 kilometers. The earthquake’s magnitude was estimated at 6.9.

MEDIA CHANNELS
         

MORE Business NEWS

Japanese households held 2,386 trillion yen in financial assets at the end of March, up 7.1% from a year earlier, as rising share prices, wider use of the new NISA investment program and the weaker yen lifted the value of assets held by individuals.

The sale of religious corporations that operate temples and shrines across Japan is drawing growing scrutiny from authorities, who fear the transactions could be used for tax evasion and money laundering, as brokers openly advertise properties and corporate status for tens or even hundreds of millions of yen.

The Nikkei Stock Average fell for a second straight session in Tokyo as investors locked in profits from a rapid rally in artificial intelligence and semiconductor-related shares, briefly sending the benchmark down more than 1,300 yen before bargain hunting helped it recover part of the loss.

Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding are aiming to resume construction of liquefied natural gas carriers around 2035, as Japan’s shipbuilding industry looks for a path to recovery after losing much of the global market to lower-cost rivals in South Korea and China.

Finance Minister Katayama held online talks with U.S. Treasury Secretary Scott Bessent as the yen approached its weakest level in about 39 years, with the two sides believed to have discussed possible responses, including foreign exchange intervention.

Every year, thousands of people save money by buying through the Japanese auction process. But many do not realize they've paid too much until the vehicle arrives.

Tokyo stocks surged at the start of the week, with the Nikkei Stock Average closing above 72,000 for the first time and extending its record-setting streak to a sixth consecutive trading day.

Sugar prices are on a firmer upward trend as concerns grow over the impact of Middle East tensions and the weaker yen, raising the prospect of further cost pressure on confectionery and other food products.