Kananaskis, Canada — As global leaders gather for the G7 Summit in Canada, Japanese Prime Minister Shigeru Ishiba is expected to raise a critical issue with U.S. President Donald Trump the removal of 25 percent tariffs on Japanese automobile imports.
This meeting between the two leaders, scheduled on the sidelines of the summit, marks a pivotal moment in Japan’s trade diplomacy. The automotive tariffs, imposed under Trump’s “America First” policy, have rattled Japanese manufacturers and contributed to a slowdown in Japan’s economy. Analysts warn the tariffs could cost Japan up to 0.9% of its GDP if not lifted.
Ishiba, under growing domestic pressure ahead of Japan’s upper house elections, will reportedly make a strong personal appeal for the full removal of these tariffs. In exchange, Tokyo is offering increased investments in U.S.-based electric vehicle manufacturing and deeper defense cooperation including expanded AUKUS-aligned tech-sharing.
Japan’s chief negotiator, Ryosei Akazawa, has held several rounds of pre-summit talks in Washington. Sources suggest Tokyo is open to a phased reduction approach, but only if it guarantees comprehensive market access and reciprocal terms. Still, Japan’s official position remains firm no partial deal will be accepted.
The U.S. has not yet signaled willingness to roll back the tariffs, which are set to rise to 30 percent in July, unless an agreement is reached. Trump has hinted that any concession must clearly benefit U.S. workers and align with his 2024 campaign promises on reshoring industry.
The G7 Summit, already dominated by tensions over trade, Ukraine, and Middle East diplomacy, may now serve as the stage for a high-stakes bilateral breakthrough or a deepening rift between two close allies.
