Japan Clarifies: No Defense Spending in New US Trade Deal
Japan's top trade negotiator has clarified that the new trade agreement between Japan and the United States does not include any provisions related to defense spending or tariffs on steel and aluminum.
Speaking to reporters in Washington on Wednesday, Ryosei Akazawa, Japan's envoy on tariffs, confirmed, 'The deal does not include anything on defense spending,' putting to rest speculation that military budgets might be part of the broader agreement. This follows earlier calls by U.S. President Donald Trump urging Japan to boost its defense spending.
Akazawa also confirmed that US-imposed tariffs of 50 percent on Japanese steel and aluminum remain unchanged and were not addressed in the newly agreed trade deal. 'If you are asking whether the deal includes steel and aluminium, it does not,' he stated.
Despite the exclusions, the announcement of the trade pact brought a boost to investor confidence. Japan's stock market surged in response, with the Nikkei 225 index jumping 3.18% to close at 41,040.66 yen. The broader Topix index also rose by 3.11%, finishing at 2,924.42 yen — gains led primarily by automotive stocks as the deal includes tariff reductions on vehicles and car parts.
The agreement marks a step forward in trade relations between the two nations, focusing on economic cooperation without touching on more contentious defense or industrial issues.
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