Overview

• Ishiba said key disagreements persisted with the US on cutting the 25% tariff on Japanese auto imports following the G7 summit on June 17.
• Toyota Motor Corp flagged a 180 billion yen profit loss for April and May; Honda expects a 650 billion yen earnings hit this year; and Mazda withheld its full-year forecast citing tariff uncertainty.
• Japan’s overall exports fell in May for the first time in eight months, reflecting broader economic strain from US levies.
• Analysts warn that failing to secure a trade deal could erode confidence in Ishiba and jeopardize his ruling coalition’s majority in next month’s upper house election.
• Both leaders are set to reconvene at the NATO summit in The Hague starting June 24, offering another chance to resolve their trade dispute.