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Japan, U.S. Continue Key Trade Talks as Auto Tariffs Remain Major Concern

Japan’s top trade negotiator, Akazawa, said the 25% U.S. tariffs on automobiles and auto parts are causing serious losses for Japanese companies and must be resolved before any trade deal can move forward. He stressed that the auto sector is central to Japan’s economy and cannot be compromised.

Speaking after a 40-minute phone call with U.S. Commerce Secretary Lutnick, Akazawa told reporters that both countries have agreed to keep negotiating and maintain momentum. The call was part of ongoing efforts to reach a trade agreement before key tariff deadlines take effect.

Akazawa explained that Japan has already put all important issues on the table and sees no reason to introduce new topics at this point. “There is no point making a trade deal with the U.S. if we cannot agree on automobile tariffs,” he said.

He also noted that trade talks with President Trump’s administration are difficult, calling Trump a “very tough” negotiator. Still, Akazawa said his role is to build trust through honest discussions and find common ground step by step to create a full trade package as soon as possible.

At the same time, Akazawa made it clear that Japan will not sacrifice its agriculture sector to finalize a deal. “We won’t give up our farmers’ interests for the sake of this agreement,” he said.

Later, Akazawa briefed Prime Minister Ishiba on the outcome of the U.S. talks. The Japanese government considers this dialogue a positive sign that both sides are committed to continuing high-level trade talks and working together on key economic issues.

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