President Donald Trump said negotiators made “big progress” in a meeting with Japanese officials seeking a deal to avoid higher levies he has threatened against US trading partners.
“A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!” Trump posted Wednesday on his social media site following the meeting.
Trump earlier in the day had said he would personally attend the talks, which were led by the US Treasury and Commerce Departments.
The talks did not result in an immediate halt on the tariffs, but preparations are underway for the second round of talks to take place later this month, Japan’s lead negotiator Ryosei Akazawa said in Washington Wednesday. He had met with Trump for 50 minutes, and with the US negotiators for 75 minutes.
“Both sides will engage in frank and constructive discussions and aim to reach an agreement as soon as possible,” he said, adding that it appeared the US was seeking a deal before the end of the 90-day reprieve of the so-called reciprocal tariffs.
He also declined to elaborate on whether security issues had been discussed, but confirmed that currencies were not part of the talks — a key point that market participants were watching, fearing pressure from the US to strengthen the yen.
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The Japanese currency weakened against the dollar after Akazawa’s comment on foreign exchange, losing as much as 0.7% of its value to 142.86 against the dollar. While Akazawa didn’t confirm, Kyodo News reported Trump raised the issue of Japan spending more on defence in Wednesday’s talks.
Foreign capitals are racing to negotiate deals with the US to avert high import taxes Trump imposed — and then quickly paused — on about 60 trading partners. That move put a 24% across-the-board tariff on Japanese imports on hold, though a 10% baseline charge still applies — as well as 25% levies on cars, steel and aluminium.
The Japan talks are being closely watched as a test case for other nations uncertain over what concessions Trump will seek to extract.
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Treasury Secretary Scott Bessent has said Japan, a military ally, will likely be prioritized as the US deals with a flood of nations all looking to cut their own deals.
Bessent has said he envisions reaching agreements with Japan and other US partners to harness a collective effort to apply economic pressure on China.
Japan is expected to offer the US a broad deal as it urges Trump to drop the 24% duty. During a February meeting with Trump, Japanese Prime Minister Shigeru Ishiba promised to buy more American liquid natural gas and raise investment in the US to US$1 trillion.
Japanese leaders have touted Japan’s standing as the biggest investor in America, including factories built by Japan’s automakers that have created US jobs.
“From our side we do want things to progress as fast as possible,” said Akazawa. “But it’s impossible to tell how the negotiations will go.”
