Japan’s top trade negotiator reportedly cancels U.S. trip

Japan’s top trade negotiator Ryosei Akazawa canceled a trip to the United States on Thursday over 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 the discussion of U.S. tariff measures.

“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 told reporters.

Japanese media outlet Kyodo News said it has not been decided whether he will reschedule the trip, while Reuters said Akazawa could head to Washington as early next week after the outstanding issues are resolved, citing an anonymous government source.

Hayashi said Tokyo will urge the U.S. to amend its presidential order on reciprocal tariffs as soon as possible, and ask Washington to issue a presidential order to lower tariffs on automobiles and auto parts.

The White House has an executive order setting the baseline tariff rate for Japan at 15%, but there has not been a written confirmation cutting the tariff rate for automobiles to 15% from 25%.

Akazawa reportedly said in July that the U.S. had promised to amend the executive order on reciprocal tariffs on Japan to include a “no-stacking” arrangement, in which tariffs will not stack on each other beyond 15%. That would be similar to the arrangement made with the European Union.

“We have confirmed with the United States that a sincere and prompt implementation of the Japan-US agreement is vital,” he said on Thursday.

Separately, Bank of Japan board member Junko Nakagawa said on Thursday that although tariff negotiations between the two sides have resulted in an agreement, many uncertainties remain.

He warned that exports and industrial production are projected to be negatively affected in Japan “for the time being,” saying that there will be a “reactionary decline” in light of front-loading from U.S. tariffs.

Corporate profits are also expected to decline, mainly in the manufacturing sector, Nakagawa said, “reflecting the effects of the deterioration in export profitability due to the increase in U.S. tariffs and of the slowdown in overseas economies.”

Reuters had earlier reported that also on the agenda for Akazawa’s trip was a written confirmation of the details of Japan’s $550 billion investment package for the U.S. in exchange for reduced tariffs on imports.

That comes after U.S. Commerce Secretary Howard Lutnick said in a Fox News interview on Monday stateside that the U.S. will make an announcement regarding the package.

The $550 billion package was announced as part of Tokyo’s deal with the U.S. in July, which saw so-called “reciprocal” tariffs on Japanese exports lowered to 15% from 25%. Tariffs on Japan’s key automobile sector were also cut to 15%.

However, sticking points emerged over the $550 billion investment package, with Trump touting the package as “our money to invest, as we like.”

“Some people are saying Japan is simply handing over $550 billion,” Akazawa said after the trade deal was announced. “But such claims are completely off the mark,” according a to Reuters report on July 25.

Akazawa also reportedly said that the returns would be split between Japan and the United States, according to the degree of contributions by each side, while recognizing the U.S.’ willingness to contribute a larger share.