• Japanese Prime Minister Shigeru Ishiba meets with US President Trump at the G7 summit.
• The meeting aims to negotiate the elimination of tariffs affecting Japanese auto exports.
• Economists warn that tariffs may significantly impact Japan's GDP.
• No breakthrough was achieved, but both leaders will continue to negotiate.

Japanese Prime Minister Shigeru Ishiba met with US President Donald Trump on the sidelines of the G7 summit in Kananaskis, Alberta, to push for the elimination of trade tariffs that threaten Japan's automotive industry. The 30-minute discussion follows multiple rounds of trade talks and comes as Ishiba's government faces increasing pressure domestically due to potential electoral repercussions, particularly from next month's upper house elections, according to Channel News Asia and South China Morning Post.

During the meeting, Ishiba expressed hopes that Trump would reconsider the 25% tariff imposed on Japanese cars, alongside a paused 24% reciprocal tariff, warning that maintaining these duties could have far-reaching consequences on Japan's economy. Economists estimate that tariffs might reduce Japan's GDP by nearly 1%, affecting not just auto exports but also the overall economic growth, as highlighted by findings from Reuters and Channel News Asia.

The ongoing negotiations are crucial for Ishiba, especially after the recent electoral loss in the lower house which weakened his party's majority. Observers note that returning home without a deal could politically benefit Ishiba if it demonstrates his unwillingness to concede to US demands, a sentiment echoed by political analysts like Michael Cucek, according to South China Morning Post and Channel News Asia.

Despite the challenges, Ishiba maintained that "automobiles are a major national interest” for Japan, reflecting the need to safeguard economic interests through continued dialogue and negotiation, as detailed by Channel News Asia and Reuters.