Japan Tariff Negotiator Held In-Depth Talks with Lutnick, Japanese Government Says

Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)
Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)
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Japan Tariff Negotiator Held In-Depth Talks with Lutnick, Japanese Government Says

Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)
Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)

Japan's tariff negotiator Ryosei Akazawa held "in-depth exchanges" over the phone with US Commerce Secretary Howard Lutnick on Thursday and Saturday, the Japanese government said.

A pause on a 24% reciprocal tariff on imports from Japan expires on July 9, although US President Donald Trump has suggested the rate could be even higher.

The Japanese government also said in a statement that it intends to continue actively coordinating with the US side on the matter, as it worked to avert higher tariffs.

The White House declined to comment on the report, referring only to Trump's recent comments on Japan.

Trump this week hammered Japan over what he said was Tokyo's reluctance to import US-grown rice, and accusing Japan of engaging in "unfair" autos trade.

Japan has in fact imported historically high volumes of US rice in recent months as domestically grown rice has skyrocketed in price since last year.

It was unclear if Trump would make good his pledge to skip further trade negotiations with Japan and send it a letter with a specific tariff rate, on top of the 10% already in effect on most trading partners. On Friday he said he had signed letters to 12 countries and they would be going out on Monday, but did not identify them.

He expressed doubt that a deal could be reached with Japan on Tuesday, and suggested he could impose a tariff of 30% or 35% on imports from Japan - well above the 24% tariff rate he announced on April 2.

Japanese Prime Minster Shigeru Ishiba on Wednesday said he was determined to protect his country's national interests as trade negotiations with the US struggled, noting that his country was the largest investor in the United States.

Tokyo has yet to secure a trade deal after nearly three months of negotiations as it scrambles to find ways to get Washington to exempt Japan's automakers from 25% automobile industry-specific tariffs, which are hurting the country's manufacturing sector.



IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
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IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.

The International Monetary Fund warned on Friday that risks related to trade tensions continue to cloud the global economic outlook and uncertainty remains high despite some increased trade and improved financial conditions.

IMF First Deputy Managing Director Gita Gopinath said the fund would update its global forecast later in July given "front-loading ahead of tariff increases and some trade diversion," along with improved financial conditions and signs of continued declines in inflation.

In April the IMF slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs on imports now at 100-year highs and warning that rising trade tensions would further slow growth.

At the time, it cut its forecast for global growth by 0.5 percentage points to 2.8% for 2025, and by 0.3 percentage points to 3%. Economists expect a slight upward revision when the IMF releases an updated forecast in late July.

According to Reuters, Gopinath told finance officials from the Group of 20 major economies who met this week in South Africa that trade tensions continued to complicate the economic outlook.

"While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high," she said, in a text of her remarks.

She urged countries to resolve trade tensions and implement policy changes to address underlying domestic imbalances, including scaling back fiscal outlays and putting debt on a sustainable path.

Gopinath also underscored the need for monetary policy officials to carefully calibrate their decisions to specific circumstances in their countries, and stressed the need to protect central bank independence. This was a key theme in the G20 communique released by finance officials.

Gopinath said capital flows to emerging markets and developing economies remained sluggish, but resilient, in the face of increased policy uncertainty and market volatility. For many borrowers, financing conditions remained tight.

For countries with unsustainable debt, proactive moves were essential, Gopinath said, repeating the IMF's call for timely and efficient debt restructuring mechanisms.

More work was needed on that issue, including allowing middle-income countries to access the G20's Common Framework for Debt Restructuring, she said.