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

On May 16, Japan signaled its readiness to reach a better protocol with U.S. President Donald Trump on trade tariffs, rather than risk a domestic political rebound by striking a deal. Japan is eager to avoid any deterioration in relations with Washington, and Prime Minister Shigeru Ishiba initially prioritized being the first among other countries to get to the U.S. negotiating table. However, officials and analysts say business leaders and members of Ishiba's Liberal Democratic Party have urged him to reject any agreement that jeopardizes the auto industry or threatens domestic farmers, forcing him to rethink. "While Japan is very eager to be the first country to negotiate with Washington on tariff issues, that sense of urgency has now shifted to ensuring Japan gets a good protocol," a Japanese official said. Officials indicated that it is unlikely an agreement will be reached before the Japanese Senate elections. The Japanese Senate elections are scheduled for the end of July, which is expected to be a significant test for the highly unpopular Ishiba government. (Financial Times)