Japan Halts U.S. Security Talks as Trade Negotiations Hit a Wall

Tokyo pulls the plug on high-stakes defense meeting amid escalating trade tensions.

Trade talks stall—again—as both sides dig in.

Another diplomatic speedbump in the U.S.-Japan economic saga. Meanwhile, Wall Street shrugs—because when has geopolitics ever stopped a bull market?

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Christopher Johnstone, former Center for Strategic and International Studies Japan Chair senior associate, said that Japan holds the meeting in high regard because it grants it the ability to “showcase the strength of the US-Japan alliance.”

U.S.-Japan Trade Talks “In a Fog”

The scrapped meeting comes amid U.S.-Japan trade talks remaining “in a fog,” according to top Japanese trade negotiator Ryosei Akazawa on Friday. The two sides have held several in-person talks but have not been able to reach a major breakthrough.

In 2024, the U.S. exported $79.7 billion of goods to Japan and imported $148.2 billion, resulting in a goods trade deficit of $68.5 billion.

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