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US Commerce Secretary Howard Lutnick had indicated that an announcement regarding Japan’s investment would be made this week.
Japan’s Economic Revitalization Minister Ryosei Akazawa (Image: Reuters)
Japan’s leading trade negotiator abruptly canceled his planned visit to the United States on Thursday, causing further delays in discussions aimed at finalising a $550 billion investment package. This package, proposed by Tokyo, is in exchange for relief from heavy tariffs.
Ryosei Akazawa had been scheduled to travel to Washington to formalise the terms of the package, including the division of investment returns between the US and Japan, Reuters reported, citing government sources.
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US Commerce Secretary Howard Lutnick had indicated that an announcement regarding Japan’s investment would be made this week.
“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,” Japan’s government spokesperson Yoshimasa Hayashi said.
In July, Washington and Tokyo agreed to impose a reduced 15 percent tariff on imports from Japan in return for the package of investments directed towards the US, facilitated through government-backed loans and guarantees. However, specifics of the package remain unclear.
While Trump has promoted the package as “our money to invest,” claiming the US would retain 90 percent of the profits, Japanese officials have emphasised that investments will be assessed based on their benefits to Japan.
Japanese officials have consistently expressed a preference for amending the presidential executive order to remove overlapping tariffs on Japanese goods before issuing a joint document detailing the investment.
The United States has agreed to revise the July 31 presidential order to ensure the 15 percent levy agreed last month on Japanese imports is not applied to goods, such as beef, which are subjected to higher tariffs.
US representatives have also mentioned that Trump would issue another order to reduce tariffs on Japanese cars from 27.5 percent to 15 percent, though no timeline was provided.
“We are urging prompt action to amend the presidential order concerning mutual tariffs and to issue a presidential order to reduce tariffs on auto parts,” Hayashi added.
Japan experienced the largest monthly drop in exports in four years in July, primarily due to a decline in shipments to the United States. Reflecting the impact of the tariffs, Japan reduced its growth forecast for the year from 1.2 percent to 0.7 percent earlier this month.
Akazawa could travel to Washington as soon as next week once the remaining issues are resolved, according to a government source familiar with the negotiations.
(With agency inputs)
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The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d…Read More
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More
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