Report: The Trump administration suddenly demands Japan to increase defense spending, and Japan cancels high-level talks with the U.S

After the Trump administration suddenly demanded that Japan increase its defense spending, Japan canceled high-level talks with the United States. During Friday's trading session, the dollar maintained a 0.4% gain against the yen, trading at 145.97.

U.S. Secretary of State Marco Rubio and Defense Secretary Mark Esper were scheduled to hold the annual "2+2" security dialogue with Japanese Defense Minister Nobuo Kishi and Foreign Minister Toshimitsu Motegi on July 1 in Washington.

However, media reports citing informed sources indicated that Tokyo decided to cancel the meeting after the U.S. proposed that Japan should raise its defense spending to 3.5% of GDP, up from a previous request of 3%. This higher demand was made in recent weeks by Elbridge Colby, the Pentagon's third-ranking official, which sparked dissatisfaction on the Japanese side.

U.S.-Japan relations are undergoing difficult trade negotiations following President Trump's implementation of "reciprocal" tariffs on Japan in April, while tensions over security issues have exacerbated friction between the two sides.

A senior Japanese official stated that the decision to cancel the July 1 meeting was also related to the upcoming Japanese Senate elections on July 20, where the ruling Liberal Democratic Party is expected to lose some seats.

Christopher Johnstone, a former senior expert on Japan affairs in the U.S. government, stated:

Japan has always placed a high value on the "2+2" talks, as such meetings have political significance and help demonstrate the solidity of the U.S.-Japan alliance. The postponement of the meeting until after the Japanese elections indicates that Japan feels noticeably uneasy about the current state and future prospects of bilateral relations.

The Japanese side seems to believe that the political risks of holding a meeting before the elections outweigh the potential benefits. If this is true, it is a rather unusual assessment.

Frictions between the U.S. and Japan come at a time when the U.S. is urging its European and Asian allies to increase defense spending. Colby is at the forefront of this initiative. During a Senate nomination hearing in March, his call for Japan to increase defense spending was rebutted by Japanese Prime Minister Shigeru Ishiba, who emphasized that Japan would decide its own budget.

The Japanese Ministry of Defense declined to comment on whether the talks had been canceled, stating only that the specific timing of the next "2+2" meeting had not yet been decided. The U.S. State Department and the Pentagon also declined to comment.

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