key takeaways
- The US decision to impose 25% tariffs on 1 August has caught the Ishiba government off guard, as it considers its options given the difficulty of concluding an agreement before the upper house elections.
- The US tariff announcement will not necessarily alter the outlook for the elections, but the outcome of the elections could affect whether the Japanese government is able to conclude a deal in their aftermath.
- The manner in which the US informed Japan of the tariffs has prompted shock and anger in Tokyo, suggesting growing doubts about the bilateral relationship.
Japan Foresight 