Japan, US to 'accelerate' trade talks after Trump-Ishiba call

TOKYO: Japanese Prime Minister Shigeru Ishiba and US President Donald Trump agreed on Friday (Jun 13) to speed up discussions on a bilateral trade deal, amid heightened global economic uncertainty and geopolitical tensions.

The two leaders held a phone call ahead of their planned meeting on the sidelines of the Group of Seven (G7) summit, set to begin Sunday in Canada.

“We agreed to accelerate discussions toward realising an agreement that would be beneficial to both Japan and the US,” Ishiba told reporters after the call, which was initiated by Tokyo.

TRADE TENSIONS AND TARIFFS

Japan, a key US ally and its largest investor, has been subject to a baseline 10 per cent tariff imposed by Trump on most trading partners, as well as steeper levies on autos, steel and aluminium. In April, Trump announced an additional 24 per cent "reciprocal" tariff on Japanese imports but paused enforcement until July.

Despite five rounds of talks, both sides remain far apart. Japan insists that all Trump-announced tariffs must be lifted for any agreement to proceed.

“Our position remains unchanged,” Ishiba said.

Tokyo’s trade envoy Ryosei Akazawa had earlier told reporters in Washington that “some progress” had been made but that “we've not been able to find a point of agreement yet.”

G7 SUMMIT AND MIDDLE EAST TENSIONS

Ishiba said the upcoming G7 summit would be a chance to deepen dialogue on the bilateral relationship. The leaders also discussed Israel’s military strikes on Iran, and according to the Japanese Foreign Ministry, reaffirmed that “peace and stability in the Middle East is extremely important.”