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Tensions Rise: Japan Cancels U.S. Security Meeting Over Defense Spending Dispute

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Japan has canceled a key security meeting with the United States following pressure from the Trump administration to dramatically increase its defense spending, according to a Financial Times report on Friday.

The annual “2+2” meeting, which typically brings together Japan’s foreign and defense ministers with their U.S. counterparts, was scheduled for July 1 in Washington. U.S. Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth were set to meet with Japanese Foreign Minister Takeshi Iwaya and Defense Minister Gen Nakatani. But sources say Japan abruptly pulled out of the talks after the U.S. demanded Tokyo raise its defense budget to 3.5% of its GDP—well above a previously suggested 3%.

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In a more aggressive stance, Japan’s Nikkei newspaper reported that the Trump administration had even pushed for 5% of GDP in defense spending from its Asian allies, including Japan.

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A Japanese foreign ministry official, speaking anonymously, denied that any formal conversations had taken place about specific percentage targets. The official also said they could not confirm the FT report. However, tensions appear to be mounting, especially with Japan’s upper house elections coming up on July 20—a crucial test for Prime Minister Shigeru Ishiba’s minority government.

A U.S. official who also requested anonymity told Reuters that Japan had “postponed” the meeting, a decision made weeks earlier. The official did not provide a clear reason, but some speculate that the defense spending demands and political timing played a significant role.

According to the FT, the latest push for higher defense budgets was led by Elbridge Colby, the Pentagon’s third-ranking official. Colby has recently drawn criticism for reviewing a critical U.S. submarine deal with Australia, which has already upset another key Indo-Pacific ally.

State Department spokesperson Tammy Bruce declined to comment on the report during a press briefing, and the Pentagon also withheld any immediate statement. Japan’s embassy in Washington and its Ministry of Defense did not respond to inquiries, and calls to the Prime Minister’s office went unanswered.

In March, Prime Minister Ishiba had already pushed back against growing external demands regarding Japan’s military budget. “Japan’s defense decisions are made by Japan,” he emphasized at the time, reacting to Colby’s suggestion during his Senate hearing that Japan should spend more to deter Chinese aggression.

The canceled meeting also comes just days before the upcoming NATO summit in Europe, where President Donald Trump is expected to repeat his demands that European allies commit 5% of GDP to defense—a sharp increase from the 2% standard.

This latest diplomatic fallout underscores the strain in U.S.-Japan relations, which have already been challenged by trade disputes, tariffs, and regional security issues. As allies recalibrate their roles in a shifting global order, one thing is clear: defense diplomacy is no longer just about cooperation—it’s now a negotiation.

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