- By Shivangi Sharma
- Thu, 28 Aug 2025 09:35 PM (IST)
- Source:JND
Japan has unexpectedly cancelled a high-level trade mission to Washington just as negotiations with the United States were set to enter their 10th round, raising questions about the future of the agreement designed to ease tariffs and boost economic cooperation. Ryosei Akazawa, Japan’s chief tariffs negotiator, was scheduled to leave for Washington on Thursday morning to formalise financial details of the deal, including profit-sharing and tariff adjustments.
The package, reportedly worth USD 550 billion in Japanese investment for the US, was also expected to finalise commitments on reducing American tariffs on Japanese imports from 25 per cent to 15 per cent. However, hours before departure, the Cabinet Secretariat confirmed that the trip was called off, citing the need for further technical discussions at the working level.
Uncertainty Over US Tariffs
At a press conference on Wednesday, Akazawa stressed Japan’s priority of securing the swift implementation of the July 22 handshake agreement, particularly lowering tariffs on automobiles and ensuring that reciprocal tariffs are calculated fairly. He noted that Japan sought assurances from Washington on a “no-stacking” tariff arrangement similar to what the European Union enjoys, preventing duties from exceeding the 15 per cent baseline rate.
“The Japanese government wants to realise growth on both sides, strengthen economic security, and promote mutual benefits early,” Akazawa said before the sudden cancellation.
Chief Cabinet Secretary Yoshimasa Hayashi later explained that the trip was halted because unresolved technical points required additional coordination. He added that Tokyo would continue pressing the US to amend its presidential order on tariffs and issue a written confirmation of commitments.
Investment Package In Limbo
Another key agenda item was Japan’s proposed USD 550 billion investment in the United States. According to Reuters, Akazawa had planned to exchange views on the agreement document, confirming whether Washington’s executive order would cover the reciprocal tariff changes promised in July.
The White House currently maintains an order setting Japan’s tariff baseline at 15 per cent, but the absence of a written directive lowering automobile tariffs has fueled Tokyo’s concerns. Without this confirmation, Japanese officials are wary of proceeding with a deal that may lack enforceability.
Kyodo News reported that it remains undecided whether Akazawa’s trip will be rescheduled. Reuters cited sources suggesting he may head to Washington as early as next week once outstanding issues are resolved.