TOKYO: Japan is considering using the purchase of U.S. defence equipment as a bargaining chip in tariff talks, its top tariff negotiator AKAZAWA Ryosei said on Thursday as he heads for a fourth round of the negotiations in Washington this week.

The defence equipment purchase would be among a package of proposals to gain U.S. concessions, which also include technical cooperation in shipbuilding, revision to inspection standards for imported automobiles and increased imports of U.S. farm products.

“Japan’s purchase of defence equipment would contribute to the U.S. trade surplus, so in that sense, it could be considered (in the trade talks),” Akazawa told reporters.

Akazawa will meet with U.S. Treasury Secretary Scott Bessent on Friday in the fourth round of trade talks in Washington, as Japan faces a 24% tariff rate starting in July unless it can negotiate a deal with the U.S.

Japan and the U.S. have agreed to deepen the trade discussions with the G7 leaders’ summit on June 15-17 in mind, where U.S. President Donald Trump and Japan’s Prime Minister ISHIBA Shigeru are set to meet in person.

A source familiar with the talks said a U.S. trade court’s ruling to block Trump’s sweeping tariffs would not change Japan’s strategies in the trade talks.

Japan wants to eliminate not just “reciprocal” tariffs but also industry-specific tariffs on automobiles, said the source, who declined to be identified as the matter is private.

Speaking to reporters on the potential defence equipment purchase, Akazawa did not specify which equipment Japan is considering buying. Japanese media reported that Trump pitched the F-47 and other fighter jets in a phone call with Ishiba last week.

Meanwhile, a Japanese government spokesperson denied a report by the Asahi Shimbun that the government has started considering increasing its share of costs for U.S. troops stationed in Japan.

The budget for the costs of stationing U.S. troops “has been shared appropriately,” Chief Cabinet Secretary HAYASHI Yoshimasa told a regular press conference.

Similarly, Akazawa said national security and tariff deals should be separated as they are different matters.

Reuters