Japan, US Hold ‘Deep’ Talks Ahead Of Trump’s August Tariff Deadline

Tokyo and Washington are stepping up diplomatic engagement amid rising trade tension, with leaders signaling efforts to keep dialogue open.

Japan’s top trade negotiator Ryosei Akazawa and U.S. Commerce Secretary Howard Lutnick held a 45-minute phone call Thursday to discuss the impending U.S. tariffs, reaffirming each country’s stance as a key tariff deadline approaches.

Japan and the U.S. engaged in what Tokyo described as a "deep conversation" on Thursday over U.S. trade measures, just a day after U.S. President Donald Trump reiterated plans to impose a 25% tariff on Japanese imports from August 1, barring a breakthrough in trade talks.

Japan’s trade chief Ryosei Akazawa and U.S. Commerce Secretary Howard Lutnick used the call to "re-confirm each other's position" and continue the dialogue, Reuters reported, citing a statement from Japan’s government.

The diplomatic exchange comes ahead of a potential meeting between Japanese Prime Minister Shigeru Ishiba and U.S. Treasury Secretary Scott Bessent in Tokyo on Friday, where trade could feature prominently.

Despite the looming deadline, U.S. Secretary of State Marco Rubio downplayed reports of escalating friction, telling Reuters there was “no drama or division,” even as Ishiba publicly stated Japan should reduce dependence on the U.S. for food, energy, and security.

Last week, Trump announced the 25% tariffs on Japanese imports, escalating trade pressure. 

A former Biden administration official told Reuters that the situation is tense but suggested a deal could be reached before the August 1 deadline to ease friction.

On Stocktwits, retail sentiment was ‘bullish’ for the iShares MSCI Japan ETF (EWJ), ‘neutral’ for the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ), and ‘bearish’ for the SPDR Dow Jones Industrial Average ETF Trust (DIA), with message volume ‘normal’ across all four.

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