Japan is preparing a strategic move in its ongoing trade negotiations with the United States. According to Ryosei Akazawa, Tokyo’s economic revitalization minister and lead tariff negotiator, the purchase of American defense equipment could be a key bargaining tool. Akazawa is heading to the US for the crucial fourth round of talks this Friday.

This isn’t the only item on the agenda. Other significant points of discussion include collaborative efforts in shipbuilding, potential changes to vehicle import inspection standards, and increased imports of American agricultural products. Japan is actively seeking concessions to alleviate the impact of tariffs imposed by the Trump administration.

Akazawa hinted at the strategic use of defense spending, stating (as reported by JIJI.com) that “If defense equipment purchases and the like are included (in the trade balance), the United States will in effect accumulate a trade surplus. I think it could come into the picture (for negotiations).” This suggests a calculated approach to leverage US trade deficits to gain concessions in the tariff negotiations.

The upcoming negotiations are highly anticipated, as both nations seek to find a mutually beneficial solution that addresses trade imbalances and promotes economic cooperation. The inclusion of defense spending as a negotiating point adds a new dimension to these already complex talks.