In one of the initial face-to-face negotiations since his flurry of tariffs on global imports sent markets into a tizzy and sparked fears of a recession, President Donald Trump heralded "significant strides" in tariff negotiations with Japan on Wednesday. Viewing these talks as a preparatory fact-finding mission, they signaled Trump's desire to maintain a tight reign over negotiations with numerous countries anticipated in the coming days and weeks. To Japan's surprise, the president unexpectedly involved himself in Wednesday's discussions.
Tokyo had harbored hopes of confining the talks to trade and investment matters. However, by announcing his participation early on Wednesday, Trump revealed that thorny issues, including Japan's financial contribution towards hosting US troops, were among the topics up for debate.
"A Great Honour to have just met with the Japanese Delegation on Trade. Significant Strides!" Trump exclaimed in a social media post devoid of any specific discussion details.
Opposite Trump sat Ryosei Akazawa, a trusted advisor to Japanese Prime Minister Shigeru Ishiba and the relatively junior cabinet minister in charge of economic revitalization. Speaking to reporters post-negotiations, Akazawa disclosed minimal specifics but revealed that both parties had agreed to convene for a second meeting later this month. Trump had emphasized that striking a deal with Japan was a "top priority," Akazawa added.
Exchange rates, which the Trump administration has accused Japan and others of manipulating to gain a trade advantage, were notably absent from the discussions, Akazawa clarified. Following his comments on foreign exchange, the dollar strengthened against the yen, surging approximately 0.5% for the day. Tokyo firmly denied any currency manipulation to render its exports more affordable.
Akazawa engaged in a 50-minute meeting with Trump at the White House, followed by another nearly hour-and-a-half-long session with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, according to Japanese accounts of the negotiations.
Japan's prime minister, who has previously stated his reluctance to rush into a deal and his intention not to make substantial concessions, struck a more cautious tone when addressing reporters later in Tokyo. "Certainly, the negotiations will not be smooth sailing moving forward, but President Trump has expressed his desire to prioritize talks with Japan," Ishiba remarked.
Meanwhile, Italian Prime Minister Giorgia Meloni is set to visit the White House on Thursday to discuss tariffs imposed on the European Union with Trump. Additionally, Bessent has extended an invitation to South Korea's finance minister to Washington for negotiations next week.
