Overview

• During a July 18 meeting in Tokyo, Treasury Secretary Scott Bessent told Prime Minister Shigeru Ishiba that “a good deal is more important than a rushed deal,” signaling U.S. openness to extended talks
• Neither side delved into specific tariff concessions, leaving the critical 25% levy on Japanese autos unresolved as the deadline approaches
• Japan’s chief negotiator Ryosei Akazawa is set to continue discussions with U.S. officials over the weekend at World Expo 2025 in Osaka
• An across-the-board tariff increase from 10% to 25% on Japanese exports looms on August 1, raising the economic stakes for both nations
• Japan’s upper house election on July 20 threatens Prime Minister Ishiba’s ruling coalition majority and could weaken Tokyo’s bargaining position