Headlines:
- US-Japan tariff talks remain stalled as trade distortions emerge
- US pressure on allies’ defense spending fuels US-Japan tension
- 10th US-Japan Cyber Dialogue cements US-Japan cyber commitment
- US Marine found guilty of sexually assaulting an Okinawan woman
- US AI startups show increased interested in Japanese market
Details:
- Prime Minister Ishiba met President Trump on the G7 sidelines June 16 but failed to reach a solution to Trump’s tariffs and US trade imbalance complaints. Japan’s chief negotiator Akazawa reiterated on his 7th trip to Washington June 26 that Japan cannot accept 25% auto tariffs, though Trump said they will stay. The export value of Japanese cars to the US was down 25% compared to May 2024, and Japan’s exports fell for the first time in 8 months. US goods exports also dropped 5% overall in May, the most since 2020 as trade distortions grow. Meanwhile, Nippon Steel completed its acquisition of US Steel June 18 and revealed the veto powers US government’s “Golden Share” provides.
- The Pentagon indicated June 20 that it would press Japan to spend 5% of GDP on national defense (as much of NATO agreed on June 25), prompting reports that Japan postponed a planned July 1 “2+2” meeting of alliance defense and foreign policy leaders to avoid facing US demands ahead of an Upper House election set for July 20. Ishiba also chose not to attend the NATO summit due to “various circumstances,” perhaps including its heavy focus on defense spending increases. Leaders from South Korea and Australia also avoided the summit. PM Ishiba said on June 23 that “we shouldn’t be focusing on a numerical target for the defense budget.”
- Japan and US officials discussed collaboration on domestic cyber policies and countering malicious cyber activities June 18. The Japan side was led by Yukio Saita, Cyber Policy Ambassador and Deputy Director-General of Foreign Policy Bureau, while the US side was led by Liesyl Franz, Deputy Assistant Secretary of Bureau of Cyberspace and Digital Policy. The dialogue is bolstered by Japan’s recently joining NATO’s Malware Information Sharing Platform (MISP), and the allies’ defense leaders’ recent commitment for cooperative cybersecurity. It also supports a recent Japan-US Cybersecurity Summit with Japanese government reps and US cybersecurity startups to boost ties.
- US Marine Lance Cpl. Jamel Clayton was found guilty June 24 of sexual assault in Okinawa and sentenced to 7 years in prison. The assault occurred May 2024. The defense denied all charges but presiding Judge Obata gave credence to the victim’s testimony. Defense may appeal the ruling. Crucially, this verdict comes after a slew of sexual assault cases by US military personnel that is stressing local relations. Separately, US Navy sailors and Okinawan volunteers lit 7,000 candles June 22 on the eve of Okinawa Memorial day to honor the 80th anniversary of the end of the Battle of Okinawa.
- US-based AI startup Anthropic said June 24 that it will open its first Asian office in Tokyo as early as this fall with a focus on business-to-business sales and customer support. The company sees an opportunity in satisfying Japan’s demand for labor-saving technology. Open AI set up its first Asia office in Tokyo in April 2024. Meanwhile, a US healthcare AI startup (Hippocratic AI) announced June 16 that it would introduce an AI assistant in Japan to help ease the country’s shortage of medical workers. The company, which provides patients with non-diagnostic support such as monitoring conditions and managing medication, formed a partnership with a Tokyo-based venture firm in May.
“US-Japan Alliance Digest” is a bi-weekly summary of bilateral and related developments compiled by Sasakawa USA’s “US-Japan NEXT Alliance Initiative.” To receive “Alliance Digest” via email, contact egulum@spfusa.org.
