Japan’s top trade negotiator, Ryosei Akazawa, has postponed a scheduled trip to Washington originally intended to finalise the financial and technical details of a $550 billion investment package designed to secure tariff relief from the United States. The move reflects unresolved administrative questions that must be addressed before ministerial-level discussions can proceed .

Under a July agreement, Washington and Tokyo agreed to reduce U.S. tariffs on most Japanese goods to fifteen percent, down from earlier rates of twenty-five percent, in exchange for substantial Japanese investment via government-backed loans, guarantees, and a small portion of equity . For the auto sector, the levy was to drop from twenty-seven point five percent to fifteen percent, though no timeline has yet been established .

A central point of contention remains the so-called “stacking” issue, where the fifteen-percent rate could be layered on top of existing tariffs on certain products—such as beef—contradicting the spirit of the agreement. Japan is urging the U.S. to amend its presidential executive order to enact a “no-stacking” provision, replicating arrangements made with the European Union .

Chief Cabinet Secretary Yoshimasa Hayashi emphasised the urgency of amending the order and urged the U.S. to issue a formal order to reduce tariffs on automobiles and auto parts as soon as practical . Meanwhile, Commerce Secretary Howard Lutnick has indicated that an announcement on the investment package is expected imminently .

Japan’s exports registered the steepest monthly decline in four years in July, prompting a downward revision to its annual growth forecast—from 1.2 percent to 0.7 percent—which underscores the economic stakes of these trade discussions .

Talks are expected to continue at the administrative level, with Akazawa potentially rescheduling his Washington visit as early as next week once the outstanding issues are resolved .

— Key facts:

• A $550 billion Japanese investment pledge hinges on securing tariff relief from the U.S.;
• Tariff reductions to 15 percent for most Japanese goods, and for autos from 27.5 percent, remain unsigned; implementation stalled by unresolved detail;
• Japan demands a clarified executive order from President Trump to ensure tariffs do not duplicate (no-stacking) and to formalise reductions on auto goods;
• Economic pressure from falling exports and reduced growth projections increases urgency;
• Negotiators remain in close contact and may resume travel once administrative-level discussions clear outstanding points.