US and Japan Hit a Wall on Trade Deal at G7

Advanced | June 22, 2025

✨ Read the article aloud on your own or repeat each paragraph after your tutor.

Trade Tensions Persist

What Happened at the G7 Summit

Well, folks, the recent G7 summit in Canada wrapped up with a major topic still unresolved: the US Japan G7 trade talks. While leaders discussed lots of important stuff, one anticipated breakthrough didn’t quite happen. The United States and Japan failed to hammer out a trade deal on the sidelines of the summit., and while leaders discussed lots of important stuff, one anticipated breakthrough didn’t quite happen. The United States and Japan failed to hammer out a trade deal on the sidelines of the summit. This wasn’t entirely unexpected, as trade talks have been ongoing, but there was hope that the high-level meeting between Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump might finally bridge the gap.

The Impact of US Japan G7 Trade Talks on Tariff Negotiations

The main sticking point in these negotiations continues to be U.S. tariffs. The Trump administration has imposed significant tariffs, including a 25% levy on imported cars and parts and a 50% tariff on steel and aluminum. Japan has been particularly keen to see these measures, especially those impacting its crucial auto industry, withdrawn or significantly reduced. Think of it as a major bump in the road for bilateral trade relations.

Sources indicate that despite several rounds of talks, including those involving Japan’s chief negotiator Ryosei Akazawa leading up to the summit, the two sides just couldn’t find common ground on key issues. Prime Minister Ishiba himself stated after meeting President Trump that differences still remain and they haven’t reached an agreement on the overall package.

Economic Consequences and Next Steps

This lack of a deal is a significant concern for Japan’s economy, which relies heavily on exports, particularly in the automotive sector. With a looming deadline in early July for a potential increase in a reciprocal tariff rate from 10% to 24%, the pressure is definitely on. Japanese automakers could face substantial losses if a resolution isn’t found soon.

Despite the setback at the G7, both leaders agreed to keep the lines of communication open and continue negotiations. The path forward isn’t entirely clear, and the timing for a potential agreement remains uncertain. However, officials on both sides understand the importance of finding a mutually beneficial outcome.

Vocabulary

Summit (noun): A meeting between heads of government.
- Example: “World leaders gathered for the annual G7 summit.”
Hammer out (phrasal verb): To discuss and negotiate something until an agreement is reached.
- Example: “They spent hours trying to hammer out the details of the contract.”
Sidelines (noun): The activities or discussions that happen in addition to the main event. (Often used in the phrase “on the sidelines of”)
- Example: “The two presidents held a brief meeting on the sidelines of the conference.”
Bridge the gap (idiom): To connect two things or make a difference between them smaller.
- Example: “The new policy aims to bridge the gap between rich and poor.”
Sticking point (noun): A point in a discussion or negotiation on which it is not possible to agree.
- Example: “Tariffs were the main sticking point in the trade talks.”
Tariff (noun): A tax or duty to be paid on a particular class of imports or exports.
- Example: “The government imposed new tariffs on imported goods.”
Levy (noun): A tax, fee, or fine. (Similar to tariff in this context)
- Example: “They protested against the new levy on fuel.”
Reciprocal (adjective): Given, felt, or done in return. (In trade, a tax or duty imposed in response to a similar one from another country)
- Example: “The two countries signed a reciprocal trade agreement.”
Looming (adjective): Appearing as a shadowy large shape, especially one that is scary or threatening. (Figuratively, an event that is likely to happen soon and causes worry)
- Example: “The looming deadline caused a lot of stress.”
Setback (noun): A reversal or check in progress.
- Example: “Failing the exam was a minor setback in her career plans.”

Discussion Questions (About the Article)

What was the main outcome of the trade discussions between the US and Japan at the recent G7 summit?
What specific U.S. trade measures are the main focus of Japan’s concerns?
According to the article, what was the Japanese Prime Minister’s reaction after meeting President Trump?
Why is the failure to reach a trade deal particularly worrying for Japan’s economy?
What was the agreement regarding future negotiations between the two countries?

Discussion Questions (About the Topic)

How do trade tariffs impact international relations between countries?
What are some potential strategies countries can use to resolve trade disputes?
How might trade tensions between major economies like the US and Japan affect global markets?
What role do summits like the G7 play in resolving bilateral issues?
In your opinion, what is the most important factor for countries to consider when negotiating trade deals?

Related Idiom

“At a standstill”

Meaning: A situation in which there is no movement or activity; a complete halt.
Example: “Trade negotiations between the two nations are currently at a standstill.”

📢 Want more practical tips to improve your English while learning about today’s important topics? Sign up for the All About English Mastery Newsletter!

Follow our YouTube Channel @All_About_English for more great insights and tips.

This article was inspired by: Yahoo News, June 18, 2025