Japan canceled this week’s Washington trip to finalize the $550 billion US-bound investment package, delaying the deal while tariff changes remain unresolved.
Reuters reported that trade negotiator Ryosei Akazawa pulled the visit due to administrative delays, with NHK and Kyodo noting outstanding issues at the working level. A government source said Akazawa could fly early next week once items are settled.
The July understanding set a reduced 15% tariff on US imports from Japan in exchange for the package, which Tokyo would channel mostly through government-backed loans and guarantees. Specific allocations remain unclear.
Trump called the package “our money to invest” and said the US would retain 90% of profits. Japanese officials counter that investments must also benefit Japan and that profit-sharing “would be based on the degree of contribution and risk taken by each party.”
READ: Did Trump Get Duped By Japan?
Tokyo wants an amended presidential order to prevent stacking the new 15% levy on goods already subject to higher rates. US officials agreed to amend the July 31 order and said Trump would cut auto tariffs to 15% from 27.5%, without specifying timing.
Commerce Secretary Howard Lutnick said an announcement is expected this week.
Information for this briefing was found via The Asahi Shimbum and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
