Bessent Warns Japan Election Hampers Tariff Deal Ahead of July 9 Deadline

US Treasury Secretary Cassandra Bessent said Japan’s upcoming Upper House election is making it harder for Tokyo and Washington to clinch an agreement on reciprocal tariffs before a July 9 deadline. In an interview with CNBC on 3 July, Bessent described the negotiations as being in a “tough spot,” noting that domestic political constraints leave Japanese officials little room to make concessions until voters go to the polls on 20 July. Bessent cautioned that failure to reach a deal could see tariffs snap back to the higher rates announced on 2 April, when Washington outlined steep levies as part of its broader trade strategy. While talks with the European Union are continuing and a separate agreement with Vietnam was essentially completed on 2 July, the Treasury chief signalled she is prepared to wait on Japan, saying she will ‘see how things evolve’ after the election.