Japan’s trade negotiator cancels US trip over ‘points that need to be discussed’
US-Japan: The investment package, which is expected to be a major economic cooperation effort, includes government-backed loans and guarantees aimed at US-bound investments.
- Aug 28, 2025,
- Updated Aug 28, 2025 1:11 PM IST
Japan's leading trade negotiator, Ryosei Akazawa, has cancelled his trip to the United States at the last minute, a move that would further delay crucial discussions aimed at finalising a substantial $550 billion investment package. This package, offered by Tokyo, is proposed in exchange for relief on tariffs that have been described as punitive.
Akazawa was scheduled to travel to Washington to formalise the investment terms, such as the division of returns between the US and Japan. However, according to Yoshimasa Hayashi, a spokesperson for the Japanese government, "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."
The investment package, which is expected to be a major economic cooperation effort, includes government-backed loans and guarantees aimed at US-bound investments. Despite previous agreements, the details of this package remain unclear. US Commerce Secretary Howard Lutnick had indicated that an announcement regarding Japan's investment was imminent.
In July, both nations agreed to reduce tariffs on Japanese imports to 15 per cent in exchange for the investment package. However, US President Donald Trump had claimed the package as "our money to invest," stating that the US would retain 90 per cent of the profits. Japanese officials, however, emphasised that decisions on investments would depend on mutual benefits.
Hayashi further noted Japanese concerns, stating, "We are strongly requesting that measures be taken to amend the presidential order concerning mutual tariffs as soon as possible, and to issue a presidential order to reduce tariffs on auto parts."
Recent economic indicators show Japan's exports have suffered the most significant monthly decrease in four years, largely due to declining shipments to the United States. Reflecting these challenges, Japan has adjusted its growth forecast for the year from 1.2 per cent to 0.7 per cent.
Despite the setback, there may be progress soon. A government source familiar with the negotiations mentioned that Akazawa might travel to Washington as early as next week, pending the resolution of outstanding issues.
(With Reuters inputs)
Japan's leading trade negotiator, Ryosei Akazawa, has cancelled his trip to the United States at the last minute, a move that would further delay crucial discussions aimed at finalising a substantial $550 billion investment package. This package, offered by Tokyo, is proposed in exchange for relief on tariffs that have been described as punitive.
Akazawa was scheduled to travel to Washington to formalise the investment terms, such as the division of returns between the US and Japan. However, according to Yoshimasa Hayashi, a spokesperson for the Japanese government, "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."
The investment package, which is expected to be a major economic cooperation effort, includes government-backed loans and guarantees aimed at US-bound investments. Despite previous agreements, the details of this package remain unclear. US Commerce Secretary Howard Lutnick had indicated that an announcement regarding Japan's investment was imminent.
In July, both nations agreed to reduce tariffs on Japanese imports to 15 per cent in exchange for the investment package. However, US President Donald Trump had claimed the package as "our money to invest," stating that the US would retain 90 per cent of the profits. Japanese officials, however, emphasised that decisions on investments would depend on mutual benefits.
Hayashi further noted Japanese concerns, stating, "We are strongly requesting that measures be taken to amend the presidential order concerning mutual tariffs as soon as possible, and to issue a presidential order to reduce tariffs on auto parts."
Recent economic indicators show Japan's exports have suffered the most significant monthly decrease in four years, largely due to declining shipments to the United States. Reflecting these challenges, Japan has adjusted its growth forecast for the year from 1.2 per cent to 0.7 per cent.
Despite the setback, there may be progress soon. A government source familiar with the negotiations mentioned that Akazawa might travel to Washington as early as next week, pending the resolution of outstanding issues.
(With Reuters inputs)