TOKYO : Japan’s chief tariff negotiator said Thursday that purchases of U.S. defense equipment may help reduce the trade deficit, suggesting it could be used as a bargaining chip in bilateral talks about the levies.
Ryosei Akazawa, who met with Prime Minister Shigeru Ishiba ahead of a fourth round of tariff talks later this week in Washington, told reporters, “If you ask me whether (such purchases) are within the scope (of the talks), it is possible.”
But Akazawa, a close aide to Ishiba, also said tariff negotiations with the United States and security matters are “based on different logic and standards, so it is inappropriate to mix them in talks.”
Japan has asked its key security ally to withdraw higher tariffs on cars, key car parts, and steel and aluminum, as well as a “reciprocal” tariff, part of which has been paused through early July. Trump has imposed the measures in a bid to reduce U.S. trade deficits.
In the rounds of negotiations so far, the Trump administration has balked at the complete removal of the new levies, including the 25-percent tariff on imported cars, sources close to the matter said.
Against that backdrop, an idea has emerged within the Japanese government to consider backing off from seeking full removal of tariffs and instead concede lower duty rates to strike a trade deal, the sources said. The Trump administration has already reached tariff-cutting agreements with China and Britain.
But Akazawa told reporters, “Our position has not changed. We absolutely cannot compromise” on the request to have all tariff measures reviewed, noting that the country’s automakers are expected to suffer “significant damage” due to the 25-percent new tariff imposed since April 3.
Japanese economic revitalization minister Ryosei Akazawa arrives at the prime minister’s office in Tokyo on May 29, 2025.
There would also be an “extraordinary” impact on the Japanese economy if the 90-day pause on the extra part of the so-called reciprocal tariff ends as scheduled on July 9, the minister in charge of economic revitalization said.
Akazawa is expected to meet with U.S. Treasury Secretary Scott Bessent, the point man for the negotiations, during his second consecutive week of tariff talks with senior officials. Bessent was absent last week as he attended the Group of Seven meeting in Canada.
Japan is hoping to schedule an in-person summit between Ishiba and President Donald Trump on the sidelines of the G7 summit in June. Ahead of the meeting, the two governments might hold their fifth round of ministerial-level talks, diplomatic sources said.
In the context of the tariff negotiations, Ishiba has pledged to support the United States in its efforts to revive its shipbuilding industry amid China’s increasing dominance, saying Washington is interested in where its military ships can be repaired overseas, possibly in Japan.
BY: The Times Union – KYODO
