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

BlockBeats News, May 16th, Japan has sent a signal that it is ready to negotiate a better deal with U.S. President Donald Trump on trade tariffs, rather than risk a domestic political backlash to reach an agreement. Japan is eager to avoid any deterioration in its relationship with Washington, and Japanese Prime Minister Shinzo Abe initially prioritized being the first to the U.S. negotiating table ahead of other countries. However, officials and analysts say that demands from business leaders and members of Abe's Liberal Democratic Party to reject any agreement that threatens the automotive industry or jeopardizes domestic farmers have forced him to reconsider.

“While Japan was very eager to be the first country to negotiate with Washington on tariff issues, this sense of urgency has now shifted, with the focus being on ensuring Japan gets a good deal,” a Japanese official said. Officials say that it is now unlikely that an agreement will be reached before the Japanese Upper House election. The Japanese Upper House election is expected to take place at the end of July, and it is expected to be a major test for the highly unpopular Abe government (Financial Times).