US and Japan Discuss Trade and Tariffs

President Donald Trump declared “significant advancement” in discussions regarding tariffs with Japan on Wednesday. These talks mark one of the initial instances of direct negotiations since the introduction of duties on global imports, which have stirred market volatility and increased concerns about potential economic downturns.

The Japanese delegation had perceived Wednesday’s engagement as a preliminary session focused on information gathering, and did not anticipate President Trump’s participation. This suggests Trump’s intent to maintain close oversight of negotiations with numerous countries in the near future.

Tokyo also sought to confine the discussions to trade and investment matters. However, Trump, in announcing his involvement on Wednesday, indicated that sensitive subjects, such as Japan’s financial contributions to sustain US forces stationed there, were also on the agenda.

“It was a great privilege to meet with the Japanese Delegation on Trade. Significant progress!” Trump announced via social media, though he omitted specific details about the discussions.

Representing Japan was Ryosei Akazawa, a trusted advisor to Japanese Prime Minister Shigeru Ishiba, serving as the Minister of Economic Revitalization, a relatively junior cabinet post.

Following the discussions, Akazawa informed reporters that both parties had consented to a subsequent meeting later in the month. He also noted Trump’s assertion that securing a trade agreement with Japan was a “top priority.” Specifics remained sparse.

Akazawa clarified that exchange rates, which the Trump administration has previously accused Japan of manipulating for trade advantages, were not addressed during the discussions.

Following his remarks on foreign exchange, the dollar gained approximately 0.5% against the yen JPY=EBS. Tokyo has consistently refuted claims of manipulating its currency to make exports more affordable.

Akazawa engaged in a 50-minute meeting with Trump at the White House, followed by another session lasting nearly an hour and a half with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, as per Japanese accounts of the meetings.

The Japanese Prime Minister, who had previously stated his unwillingness to rush into a deal or make substantial compromises, adopted a more circumspect stance when addressing reporters in Tokyo.

“Undoubtedly, the negotiations will present challenges, but President Trump has affirmed his commitment to prioritize discussions with Japan,” Ishiba remarked.

Italian Prime Minister Giorgia Meloni is scheduled to visit the White House on Thursday to confer with Trump regarding tariffs imposed on the European Union, while Bessent has extended an invitation to South Korea’s finance minister for talks in Washington next week.