Japan’s Economic Revitalisation Minister, Ryosei Akazawa, departed for Washington on Wednesday to lead key tariff negotiations with the United States. Speaking to reporters at Tokyo International Airport, Akazawa expressed optimism for a “win-win” outcome that also safeguards Japan’s national interests.
“This will be a trust-based negotiation. I believe we can reach a mutually beneficial agreement,” said Akazawa, who also serves as Japan’s envoy for the talks.
The high-stakes trip follows President Donald Trump’s temporary 90-day suspension of a 24% “reciprocal” tariff on Japanese imports — part of a broader tariff policy affecting multiple nations.
Despite being the largest foreign investor in the U.S., Japan faces steep tariffs on exports such as cars, steel, and aluminum. In response, Honda announced plans to shift production of its hybrid Civic from Japan to the U.S. this summer. While the company declined to cite tariffs directly, a spokesperson emphasized Honda’s longstanding policy to manufacture vehicles near their primary markets.
Akazawa is scheduled to meet with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. Talks may also touch on Japan’s purchases of American defense equipment and natural gas from Alaska, analysts speculate.
The Daiwa Institute of Research cautioned that Trump’s tariff policy could shrink Japan’s real GDP by up to 1.8% by 2029.
Akazawa, a U.S.-educated official with close ties to Prime Minister Shigeru Ishiba, is expected to navigate a delicate balance of diplomacy and assertiveness. “Our aim is to protect national interests while strengthening our alliance,” he said.
Analysts like Stephen Innes from SPI Asset Management suggest Japan’s outcome could shape global expectations. “If Japan walks away with a deal — even a partial one — that sets the standard. If not, brace for economic friction globally,” Innes noted in a newsletter.
He added, “And don’t forget — Japan holds the largest amount of U.S. Treasury securities. That’s serious leverage.”
Top Japanese officials, including Prime Minister Ishiba, have dismissed speculation that Tokyo manipulated U.S. Treasury markets to influence tariff decisions, calling such claims unbefitting of allies.
