Japan Sees Trade Talks Speeding Up, Hopes for June Agreement

Ryosei Akazawa, Japan's economic revitalization minster, speaks to members of the media at the Japanese embassy in Washington, DC, US, on Thursday, May 1, 2025. Akazawa is in Washington for a second round of talks this week with his US counterparts, as countries around the world watch to see where the negotiations end up. Photo by Stefani Reynolds /Bloomberg

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(Bloomberg) — Japan aims to achieve a trade agreement with the US in June, with the high-stakes bilateral discussions expected to gain momentum in mid-May, Tokyo’s chief negotiator said after concluding the latest round of talks in Washington.

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The second meeting between US officials, including Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Japan’s top trade representative Ryosei Akazawa was a frank and open one, although many areas of the discussions still need to be made concrete, Akazawa said.

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“We were able to have concrete discussions on topics such as expanding our bilateral trade, non-tariff measures, and cooperation on economic security,” Akazawa said to reporters on Thursday in Washington after the gathering. “We agreed to arrange a date for the next high-level meeting, aiming to accelerate the talks from mid-May.”

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Akazawa said he reiterated Japan’s stance that US President Donald Trump’s wide-ranging tariff campaign was “extremely regrettable” while repeating Tokyo’s plea that the tariff measures be revisited.

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A new angle on the talks emerged earlier Friday when Finance Minister Katsunobu Kato hinted at the possibility of citing Japan’s vast holdings of US Treasuries for leverage in discussions, although it’s unclear how serious he was about the idea.

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“It does exist as a card,” said Kato, speaking on a TV Tokyo program Friday. “Whether or not we use that card is a different decision.”

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There’s no indication that the matter of Japan’s foreign reserves came up during Akazawa’s meeting in Washington. The participants didn’t discuss foreign exchange, national security or China, he said.

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Akazawa said he hopes the acceleration in the negotiations will allow Trump and Japanese Prime Minister Shigeru Ishiba to reach an agreement in June. 

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“It is not simply a matter of speed, as there are national interests that must be protected on both sides, which will take some time,” Akazawa said. “There are still many issues that need to be addressed and resolved before a final agreement can be reached.”

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In mid-June, the two leaders could meet for talks on the sidelines of the summit of the Group of Seven nations in Canada. 

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Japan stands to be hit hard by US trade policies. A 25% levy on US imports of steel and aluminum started in March, with a similar tax on autos and a baseline 10% tariff on all goods kicking in earlier this month. The auto tariffs would hit the core of the nation’s industry in particular, although Trump took steps to ease the impact from those duties earlier this week.

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—With assistance from Keiko Ujikane.

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(Updates with more comments from Akazawa.)

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