key takeaways
- Despite the Trump administration’s decision to pause “reciprocal” tariffs, the Ishiba government will continue to seek a negotiated settlement with the US while pursuing timely relief domestically.
- Opposition parties have effectively accepted a political truce during the crisis, and are engaging constructively with the government on a possible stimulus package, though the size and composition of a supplemental budget is already contentious.
- The Ishiba government has also reached out to other G7 governments, though efforts to maintain a rules-based trading system will for the time being take a back seat to negotiations with Washington.
Japan Foresight 