US–Japan trade talks stall again over automotive market access

In 2025, trade negotiations between the United States and Japan have once again reached an impasse, with the reason being automotive market access at the forefront. Both governments confirmed today that discussions have stalled, largely due to U.S. demands for increased access for American-made vehicles in Japan’s tightly regulated market.

While official statements described the talks as “constructive” and emphasized ongoing commitment to dialogue, underlying tensions remain high. U.S. Commerce Secretary Lutnick has pressed for reduced barriers on U.S. automakers, but Japan’s Trade Minister Akazawa maintains that protecting domestic manufacturers is vital amidst economic uncertainty.

Political considerations also play a significant role. Japan faces upcoming national elections, where the ruling party is wary of appearing to concede to foreign competition that could impact local employment. Meanwhile, the U.S. administration, led by President Trump, seeks to reinforce a strong trade stance ahead of the next election cycle.

Despite robust cooperation in other sectors such as semiconductors, rare earth minerals, and defense, the automotive dispute continues to strain bilateral trade relations. The current stalemate is expected to delay any meaningful resolution until at least July, leaving industry stakeholders awaiting clarity.