Ahead of PM Modi's visit, Japan trade negotiator cancels US trip last minute to finalise deal

This comes ahead of Prime Minister Narendra Modi's two-day visit to Japan on August 29-30 at the invitation of Japanese Prime Minister Shigeru Ishiba.

The Japanese leader's move threatens to delay finalisation of a $550 billion investment package offered by Japan to the US to ease punitive US tariffs.

Akazawa was scheduled to visit the US on Thursday to formalise confirmation of the $550 billion package and its financial details, such as the split of returns between the two countries, per Reuters.

US Commerce Secretary Howard Lutnick had also communicated about an announcement this week about Japan's $550 billion investment.

According to Yoshimasa Hayashi, a spokesperson for the Japanese government, "It was found that there are points that need to be discussed at the administrative level during coordination with the American side. Therefore, the trip has been cancelled."

The US and Japan had reached an agreement to reduce tariffs on Tokyo's imports to 15 percent - lower than the previous 25 percent - in exchange for the investment pledge.

However, US President Donald Trump had claimed that the package was "our money to invest, as we like" and said that the US would retain 90 per cent of the profits.

Japanese officials differed and stressed that the investment would be subject to mutual benefits.

Hayashi also requested an amendment to the presidential order stating, "We are strongly requesting that measures be taken to amend the presidential order concerning mutual tariffs as soon as possible, and to issue a presidential order to reduce tariffs on auto parts."

PM Modi's visit marks the 15th India-Japan Annual Summit, where the two leaders will discuss various aspects of their strategic partnership - the Quad being one of them.