Washington: Japan on Thursday abruptly called off a high-level trade trip to Washington, throwing uncertainty over a $550 billion investment package intended to ease American tariffs.
Ryosei Akazawa, Japan’s chief trade negotiator, had been due to finalise details of the deal, including how profits would be shared between the two countries. The cancellation came hours before his scheduled departure, and officials admitted that unresolved issues had surfaced during preparatory talks.
Government spokesperson Yoshimasa Hayashi confirmed the development, saying, “It was found that there are points that need to be discussed further at the administrative level during coordination with the American side. Therefore, the trip has been cancelled.”
The package, first outlined earlier this year, was tied to a U.S. pledge to reduce tariffs on Japanese imports from 25% to 15%. However, American President Donald Trump has stirred friction by declaring that 90% of the profits from the deal should remain with the U.S. Tokyo has pushed back, insisting on a framework that ensures “mutual benefit.”
Japan is also demanding an amendment to a presidential order that maintains overlapping tariffs, particularly on auto parts. Hayashi emphasised, “We strongly request immediate action to amend the order to reflect the spirit of the agreement.”
While U.S. Commerce Secretary Howard Lutnick had hinted that an announcement was expected this week, the delay may now push back timelines. Japanese media remain divided on the next steps: Kyodo News reports no decision has been taken on rescheduling Akazawa’s trip, while Reuters suggests Washington could host him as early as next week.
The trade friction surfaces just days before Indian Prime Minister Narendra Modi lands in Tokyo for a two-day official visit on August 29–30. He will meet Japanese Prime Minister Shigeru Ishiba for the 15th Annual India-Japan Summit, where strategic, economic, and security ties including the Quad partnership will be on the agenda.