Japan may not be able to reach a trade agreement with the United States by the end of July.

On May 16th, Japan has sent a signal indicating its preparedness to negotiate a more favorable deal with US President Donald Trump on trade tariffs instead of taking the risk of a domestic political backlash in order to reach an agreement. Japan is keen to avoid any deterioration in its relationship with Washington. Japanese Prime Minister Shinzo Abe initially gave priority to being the first to reach the US negotiating table ahead of other countries. However, officials and analysts state that the demands from business leaders and members of Abe's Liberal Democratic Party to reject any agreement that poses a threat to the automotive industry or endangers domestic farmers have compelled him to reassess. "While Japan was extremely eager to be the first country to negotiate with Washington on tariff matters, this sense of urgency has now changed, and the focus is on ensuring that Japan secures a good deal," a Japanese official said. Officials mention that it is now improbable that an agreement will be reached before the Japanese Upper House election. The Japanese Upper House election is anticipated to take place at the end of July and is expected to be a significant test for the highly unpopular Abe government (Financial Times).