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One critical issue is the auto tariff exemption, which is set to expire in approximately 70 days. Until then, both sides have an opportunity to negotiate a deal. Failure to reach an agreement could result in Japan facing a 25% tariff on cars, steel, and aluminum, further damaging economic relations.
Broader Diplomatic Context
Beyond trade, US pressures extend to Japan’s hosting of US military bases. Ishiba emphasized that Japan would not simply accept increased financial contributions without negotiations, highlighting Japan’s desire to protect its sovereignty and avoid unilateral impositions.