WASHINGTON — President Donald Trump said there was “big progress” when he made the surprise move on Wednesday to negotiate directly with Japanese officials about the barrage of tariffs he has imposed on global imports.
“A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!” Trump said in a social media message that contained no details of the discussions.
Tokyo sent its economic revitalization minister Ryosei Akazawa to kickstart the talks, and he was due to brief reporters on Wednesday evening about the Washington meeting.
The Japanese official had hoped to limit the discussions to trade and investment matters. But Trump weighed in early on Wednesday, saying he would also be there to raise issues including how much Tokyo pays toward hosting U.S. troops in Japan, the biggest U.S. overseas deployment.
“Japan is coming in today to negotiate Tariffs, the cost of military support, and ‘TRADE FAIRNESS,'” he said in a post on Truth Social.
“I will attend the meeting, along with Treasury & Commerce Secretaries. Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!” Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick participated along with other officials.
Trump’s announcement earlier this month of sharp tariff increases on trading partners around the world has ignited worries about risks of a recession, higher inflation and rising interest rates and sent financial markets reeling.
Bessent also wanted to discuss the thorny issue of exchange rates with Japan, one of the first countries to begin face-to-face negotiations since Trump announced sweeping duties on dozens of countries — both friend and foe — earlier this month.
Japan has been hit with 24% levies on its exports to the United States although these rates have, like most of Trump’s tariffs, been paused for 90 days. But a 10% universal rate remains in place as does a 25% duty for cars, a mainstay of Japan’s export-reliant economy.
Bessent has said there is a “first mover advantage” given Washington has said more than 75 countries have requested talks. However, Japanese Prime Minister Shigeru Ishiba said on Monday that his country, a close U.S. ally, won’t rush to reach a deal and does not plan to make big concessions.
Ishiba has, for now, ruled out countermeasures to the U.S. tariffs.
“The difficulty for the Japanese team is that the United States has created a huge amount of leverage for itself, unilaterally,” said Kurt Tong, managing partner at the Asia Group, a Washington-based consultancy.
“The U.S. is offering to not hit Japan with sticks, and Japan is stuck in a position of offering a whole lot of carrots. And from their perspective, it feels like economic coercion,” said Tong, a former State Department official.
Trump has long complained about the U.S. trade deficit with Japan and other countries, saying U.S. businesses have been disadvantaged by trade practices and intentional efforts by other countries to maintain weak currencies.
Tokyo denies it manipulates its yen currency to gain advantage.
Trade partners in Washington
Bessent met Vietnam’s deputy prime minister last week to discuss trade and has invited South Korea’s finance minister to Washington for talks next week. Italian Prime Minister Giorgia Meloni will meet Trump at the White House on Thursday to discuss tariffs imposed on the European Union.
The full scope of Wednesday’s discussions was not yet clear.
Bessent has said he is hoping to strike deals that would cover tariffs, nontariff barriers and exchange rates, though Tokyo had lobbied to keep the latter separate.
Possible Japanese investment in a multibillion dollar gas project in Alaska could also feature, Bessent has said.
Japan hopes that pledges to expand investment in the United States will help to convince the U.S. that the two countries can achieve a “win-win” situation without tariffs, Akazawa said ahead of his departure.
Contributing: Daniel Leussink, Yoshifumi Takemoto, Leika Kihara, Kiyoshi Takenaka, and Nathan Layne
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.
