Japan’s top trade negotiator, Ryosei Akazawa, abruptly cancelled a planned visit to the United States on Thursday. The trip was meant to finalise a $550 billion investment package aimed at easing US tariffs on Japanese imports. The sudden cancellation has cast uncertainty over the timeline for the deal’s completion.
Purpose of the Visit
Akazawa was scheduled to meet US officials to confirm financial details of the investment, including how returns would be shared between the two countries, according to Reuters. US Commerce Secretary Howard Lutnick had hinted at a possible announcement this week regarding the package.
Administrative Hurdles Cited
A spokesperson for the Japanese government, Yoshimasa Hayashi, explained that unresolved administrative issues with the US side required further discussion. “It was found that there are points that need to be discussed at the administrative level during coordination with the American side. Therefore, the trip has been cancelled,” Hayashi said.
Tariffs and Investment Terms in Question
The US and Japan had earlier agreed to reduce tariffs on Japanese imports from 25% to 15% in exchange for the investment pledge. However, disagreements remain over profit-sharing. US President Donald Trump stated that “the US would retain 90% of the profits,” while Japanese officials emphasised that the investment should provide mutual benefits.
Hayashi also called for amendments to the presidential order, asking that tariffs on Japanese goods, especially auto parts, be reduced before any investment agreement is finalised. Japanese officials have stressed that removing overlapping tariffs should come first, with the investment details confirmed afterward.
Next Steps Unclear
Reports vary on when Akazawa might reschedule the trip. Kyodo News said no date has been set, while Reuters suggested the negotiator could visit Washington next week.
PM Modi’s Visit to Japan
This development comes just before Indian Prime Minister Narendra Modi’s two-day visit to Japan on August 29-30, marking the 15th India-Japan Annual Summit. During the summit, Modi and Japanese Prime Minister Shigeru Ishiba are expected to discuss strategic cooperation, including matters related to the Quad.
