key takeaways
- Trade negotiator Akazawa Ryōsei will travel to the US next week for the third round of bilateral talks at the ministerial level.
- Japan and the United States remain at odds over whether sectoral tariffs should be on the table; while Japan may be prepared to accept a reduction in these tariffs, it is unclear whether the Trump administration is prepared to discuss them at all.
- Prime Minister Ishiba Shigeru’s domestic situation — his need for a victory amidst slowing growth and widespread public dissatisfaction — could make him more eager for an earlier deal if the possibility appears.