The country will request that Washington issue a new presidential order to reduce tariffs on automobiles and auto parts.
Japan’s top trade negotiator, Ryosei Akazawa, reportedly scrapped a trip to the United States on Thursday due to unresolved issues related to the U.S.-Japan trade deal.
In a statement, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said that his trip would have involved discussions on U.S. tariff measures, according to a report by CNBC.
“However, during the coordination with the US, because it became apparent that certain points required further technical discussion, the trip was cancelled, and it was decided that discussions will continue at the administrative level,” Hayashi said to reporters, as per the report.
The U.S. and Japan reached a trade agreement in July to lower tariffs on Japanese goods to 15% from the initially pledged 25%, in return for a $550 billion investment package likely to be a combination of government-backed loans and guarantees. However, there has been no written confirmation of the slashing of automobile tariffs to similar levels.
Hayashi said Japan will urge the Trump administration to amend the executive order on reciprocal tariffs as soon as possible and ask Washington to issue a new presidential order to reduce tariffs on automobiles and auto parts.
Retail sentiment on Stocktwits about iShares MSCI Japan ETF (EWJ) was in the ‘neutral’ territory at the time of writing.
Separately, Reuters reported, citing an anonymous government source, that Akazawa could leave for Washington as early next week after the outstanding issues are resolved.
Akazawa had reportedly stated in July that Washington had promised to amend the presidential order to include a “no-stacking” arrangement, in which tariffs will not accumulate beyond 15%, a deal similar to the one the U.S. struck with the European Union.
“We have confirmed with the United States that a sincere and prompt implementation of the Japan-U.S. agreement is vital,” he said on Thursday, as per the CNBC report.
The postponement of Akazawa’s visit will also certainly mean that the details of the $550 billion investment package remain unknown. U.S. Commerce Secretary Howard Lutnick stated on Monday that a significant announcement regarding the package would be forthcoming this week.
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