Tokyo/Washington/New Delhi: Japan’s chief trade negotiator has abruptly cancelled a planned trip to the United States, putting a $550 billion investment
package on hold. The deal, aimed at easing tariff tensions, was expected to be finalised this week.
Ryosei Akazawa had been due in Washington to settle terms on how the investment returns would be shared between the two countries. But Japan’s government spokesman, Yoshimasa Hayashi, confirmed the visit was scrapped after officials found “points that need to be discussed at the administrative level”.
The setback came just days after US Commerce Secretary Howard Lutnick signalled that an announcement on the investment package was imminent. The plan, proposed by Tokyo, is linked to securing relief from heavy US tariffs.
Why it matters now
The timing is notable. PM Modi is set to arrive in Japan on August 29–30 for the 15th India-Japan Annual Summit, his first standalone trip to the country in nearly seven years. The visit will focus entirely on strengthening bilateral ties, Foreign Secretary Vikram Misri told reporters, describing it as “the highest-level dialogue mechanism” between the two nations.
Talks will cover trade, defence, security, and technology, with both leaders expected to launch fresh initiatives. Modi will also meet Japanese business leaders. The summit follows his recent meeting with Prime Minister Shigeru Ishiba at the G7 in Canada.
Meanwhile, tariff tensions continue to complicate wider regional cooperation. President Donald Trump’s decision to impose duties of up to 50 per cent on Indian goods has strained ties within the Quad, where India is due to host the next summit later this year. Misri insisted dialogue with the US continues despite the rift.
For Japan, the tariff battle has already hurt growth. Exports to the US saw their sharpest monthly fall in four years in July, prompting Tokyo to cut its growth forecast from 1.2 per cent to 0.7 per cent. Officials said Akazawa may still travel to Washington next week if pending issues are resolved.
