Japan’s chief trade negotiator, Ryosei Akazawa, has cancelled his planned visit to Washington due to unresolved technical issues concerning the U.S.-Japan trade agreement. The trip was intended to advance discussions on tariff adjustments and secure formal confirmation of a sizable investment package.
Chief Cabinet Secretary Yoshimasa Hayashi explained that during coordination with U.S. officials, it became clear that certain points required further administrative-level talks, prompting the cancellation. He assured that discussions would continue until the issues are sorted.
The agreement, reached in July, lowered tariffs on most Japanese exports from 25% to 15%, including on vehicles and parts, but Tokyo raised concerns that the U.S. was still applying additional tariffs beyond the agreed rate.
Washington acknowledged this error and pledged to correct it, though refunds have not been finalised. Japan is pressing for a swift amendment to the executive order establishing reciprocal tariffs.
Akazawa’s visit was also to finalise details on a $550 billion investment package Japan committed to the U.S. to boost American economic sectors such as semiconductors, pharmaceuticals, and energy infrastructure. This investment is linked to the tariff concessions and is intended to create closer economic cooperation.
The investment plans have sparked debate amid comments by President Trump suggesting that the U.S. would control the funds. Japanese officials countered this by emphasising that the returns will be shared proportionally between both countries.
Akazawa stated, “Some people are saying Japan is simply handing over $550 billion. But such claims are completely off the mark.”
Bank of Japan board member Junko Nakagawa warned that despite the deal, Japan’s exports and industrial output may contract temporarily due to tariff front-loading and slowing global demand, affecting corporate profitability.
Though Akazawa’s trip was postponed, sources indicate talks will resume soon once the remaining administrative issues are resolved.