Photo/Illutration Prime Minister Shigeru Ishiba with U.S. President Donald Trump in Kananaskis, Canada, on June 16 (Provided by the Cabinet Public Affairs Office)

KANANASKIS, Canada—Despite intense efforts in laying the groundwork for a breakthrough, Prime Minister Shigeru Ishiba failed to clinch a deal on removing U.S. tariffs at his second face-to-face meeting with U.S. President Donald Trump.

“Issues remain where we do not share an understanding, and an agreement has yet to be reached as to the entire package,” Ishiba told reporters here on June 16 after an approximately 30-minute meeting on the sidelines of a Group of Seven summit.

The Ishiba administration hoped to strike an interim accord on tariffs during the meeting and conclude negotiations in early July, around the time when official campaigning will start for the Upper House election, which will be held July 20. 

The outcome of the Japan-U.S. summit has clouded prospects of that scenario.

Ishiba, who first met with Trump in Washington in February, said he had a candid conversation with the U.S. president and that they agreed to instruct their ministers to continue discussions.

Ryosei Akazawa, minister in charge of economic revitalization, has held six rounds of talks with his U.S. counterparts to pave the way for an interim accord in Canada.

But the two sides have remained apart as Washington has refused Tokyo’s most important demand to eliminate tariffs on automobiles, according to government sources.

Ishiba said it is difficult to say when an agreement is expected, citing ongoing discussions.

The prime minister emphasized that the government is exploring the possibility of an agreement that is in line with Japan’s national interests.

While he refused to disclose where the two countries remain at odds, Ishiba indicated that the auto sector is a key stumbling block.

Asked about issues that need to be resolved for an agreement, Ishiba said automobiles represent a major part of Japan’s national interests and that the country must continue to do its utmost to defend its national interests.

While Trump has complained about Japan’s contribution to the costs of maintaining U.S. troops in the country, Ishiba said the issue did not come up during the meeting.

Meanwhile, Trump told reporters that his meeting with Ishiba went well.

But the U.S. president suggested on June 12 that he will further increase 25-percent tariffs on foreign automobiles, which would even raise the bar for a potential Japan-U.S. agreement.

Treasury Secretary Scott Bessent on June 11 indicated the possibility that so-called reciprocal tariffs, which have been on pause for 90 days, will be suspended beyond the July 9 deadline.

The extension would give more time for the United States to negotiate tariffs and other measures with major trading partners, such as Japan.

(This article was written by Shinya Tokushima in Banff, Junichiro Ishii in Kananaskis and Ken Sakakibara in Calgary, all in Canada.)

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