According to the Nikkei Asia website, on July 18 local time, U.S. Treasury Secretary Janet Yellen will meet with Japanese Prime Minister Shigeru Ishiba in Japan. Despite Japan's efforts to break the deadlock with the United States, both sides do not plan to discuss tariff issues.

Yellen arrived in Japan on the evening of July 17 local time, which is her first visit to Japan since taking office. After meeting with Ishiba, Yellen and her delegation will go to Osaka to attend the 2025 World Expo and participate in the official event for the U.S. National Pavilion on July 19.

Japan has assigned its Chief Trade Negotiator Akira Akiyama to accompany Yellen during her visit, hoping to break the current negotiation deadlock. Japan hopes that Akiyama's engagement with Yellen can advance negotiations before the August 1 "reciprocal tariffs" deadline.

Akiyama had visited Washington, D.C., in late June for the seventh round of Japan-U.S. tariff negotiations, but Yellen was busy pushing through Trump's "Big and Beautiful" bill, so the two did not meet.

On July 19 local time, Japanese Prime Minister Shigeru Ishiba will meet with U.S. Treasury Secretary Janet Yellen. Nikkei Asia

The report said that the U.S. is not in a hurry to reach an agreement and has clearly informed Japan that Yellen will not discuss tariff issues during this visit. Yellen also mentioned earlier that Japan will hold a House of Councillors election on the 20th, and there are many "domestic constraints" in reaching an agreement.

On the 16th local time, Trump mentioned the letter regarding tariffs on Japan, saying, "I think we may take action against Japan according to what is in the letter."

If the negotiations fail to make substantial progress, Japan will face new "reciprocal" tariffs of 25% effective on August 1. Currently, the U.S. imposes a 10% general tariff on Japanese goods, as well as additional tariffs on steel and aluminum.

David Boling, head of Eurasia Group's Japan and Asia trade, and a former senior official at the Office of the U.S. Trade Representative, said, "In the early stages of the negotiations, Japan was a priority country with a special status. But that is no longer the case. The tariff letter Trump sent to Ishiba indicates that Trump no longer sees Japan as a special country, but rather treats it like other dozens of countries."

The U.S. attempts to eliminate its $69 billion annual trade deficit with Japan by imposing higher tariffs, but Japan instead proposed cooperation in areas such as shipbuilding, which the Trump administration does not accept. Japan also tried to push the U.S. to completely remove car tariffs, but the U.S. is unwilling to make significant concessions on this issue.

After the House of Councillors election, the Ishiba government has about 10 days until the August 1 deadline to reach an agreement, but there are numerous obstacles.

The report analyzed that as long as tariff revenue continues to flow in, the U.S. has no reason to quickly reach an agreement. Data shows that as of June 30, car tariffs alone generated $10.7 billion in revenue. The uncertainty surrounding the House of Councillors election in Japan also makes the U.S. reluctant to hastily reach an agreement.

To advance the negotiations, Japan needs to make choices such as abandoning its demand to eliminate car tariffs and further opening up the market for agricultural products like rice. It remains unclear whether the Ishiba government will have the authority to make these policy adjustments after the upcoming election.

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