Japan, US Hold Key Trade Talks Ahead of August 1 Tariff Deadline

Japanese Prime Minister Shigeru Ishiba is set to meet U.S. Treasury Secretary Scott Bessent in Tokyo on Friday, aiming to finalize a trade deal before new tariffs take effect on August 1, the Yomiuri newspaper reported.

Bessent’s visit coincides with the U.S. National Day at World Expo 2025 in Osaka on July 19, which he will attend instead of the G20 finance meeting in South Africa. The U.S. delegation will also include Labor Secretary Lori Chavez-DeRemer and Deputy Secretary of State Christopher Landau, according to the White House.

Japan’s chief trade negotiator, Ryosei Akazawa, is also expected to hold talks with Bessent. Despite seven trips to the U.S. since April, Akazawa has yet to secure a bilateral trade agreement. The visit marks the first top-level meeting since President Donald Trump announced a sharp tariff increase on Japanese imports—from 10% to 25%—starting August 1.

Bessent’s arrival comes at a politically sensitive moment for Ishiba. Japan’s upper house elections are scheduled for Sunday, and recent polls suggest Ishiba’s ruling coalition could lose its majority. Having already lost control of the lower house in October, another defeat could weaken Ishiba’s leadership and empower opposition parties favoring tax cuts and easier monetary policy.

The trade standoff and looming tariffs are dominating Japan’s political discourse, with pressure mounting on Ishiba’s administration to resolve tensions swiftly. The outcome of Bessent’s visit could prove pivotal for both U.S.-Japan trade relations and Japan’s domestic political landscape.