Japan tariff negotiations hinge on defense sales, shipbuilding collaboration

Japan's tariff negotiator Ryosei Akazawa is arranging his seventh visit to the United States for as early as June 26, aiming to end tariffs that are hurting Japan's economy, two Japanese Government sources said on Tuesday.

The main focus of the visit is expected to be on US tariffs imposed on Japanese automobiles, which have a severe impact on the Japanese economy. Akazawa will also meet with Commerce Secretary Howard Lutnick and others who oversee this area, one of the sources said.

The meeting would be the first ministerial-level tariff negotiation since the Japan-US summit held in Canada on June 16.

Japanese Prime Minister Shigeru Ishiba and US President Donald Trump agreed to push ahead with trade talks when they met in Canada but failed to achieve a tariff deal.

Last month, Japan's trade negotiator said US defence equipment purchases, shipbuilding technology collaboration, a revision of automobile import standards and an increase in agricultural imports could be bargaining chips in tariff talks.

In a bid to reach an agreement with the US, Japan is also proposing a mechanism to reduce the auto tariff rate based on how much countries contribute to the US auto industry.

Japan faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with Washington.

(Reporting by Kathleen Benoza, Kaori Kaneko and Yoshifumi Takemoto; Editing by Christopher Cushing and Lincoln Feast.)