key takeaways
- The Japanese and US governments remain deadlocked as the 9 July deadline for suspending “reciprocal” tariffs approaches.
- The Trump administration has shown no signs of accepting Japan’s demand for relief from automotive tariffs, but with an election approaching and the Japanese public in no mood to compromise, the Ishiba government will not yield either.
- Absent US concessions on automotive tariffs, it is difficult for Tokyo to accept an agreement, notwithstanding the potential impact of higher US tariffs.
Japan Foresight 