- Trump joined trade talks with Japan to secure new deals on tariffs, military appropriation payments, and currencies.
- While Japan seeks to define talks narrowly, the American side is trying to broaden the agenda in order to secure more economic power.
- China is still excluded from the negotiations and might receive up to 245% tariffs as tensions with Washington continue to escalate.
US President, Donald Trump said he would be leading Wednesday’s negotiations on trade with Japan as progress in this area has remained slow especially with China. The meeting will take place in Washington and will gather the representatives of the Treasury and Commerce departments where they will discuss tariffs, military support payments and trade equity among other things.
This comes at a time President Trump is keen on obtaining efficient approaches to initiate trade negotiations after announcing massive tariffs on many nations. Currently, Japan is subjected to tariffs of 24% on its exports to the U.S., though specific sectors have been again and again offered 90-day reprieve, though a tariff of 25% remains in place in auto industry.
Trump stressed the importance of getting a positive result for both countries and in his reaction on Truth Social stated:
“Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!”
Japan Seeks to Limit Scope as U.S. Expands Agenda
To spearhead the talks, Tokyo sent Special adviser for economic revitalization, Ryosei Akazawa. Initially, Akazawa expected to negotiate with Treasury Secretary Scott Bessent but he is now to directly negotiate with Trump that is interested in adding more issues to the topic.
Japan has aimed at trade and investment liberalisation but found that other areas such as financial contribution of U.S military bases in Japan and valuation of currencies have been included by U.S negotiators. Bessent, in particular, has expressed interest in discussing exchange rate policy, a point Tokyo has strived to avoid in the talks.
Bessent’s approach is consistent with his overall plan to force friends into coordinated economic actions against China. He has recently discussed the issue with Vietnam and planned to talk with South Korea’s finance minister next week. Italian Prime Minister Giorgia Meloni is also due to attend a meeting at the White House today to talk about the EU tariffs.
Japan’s Prime Minister Shigeru Ishiba has however dismissed countermeasures and driving corrective measures while asserting that Tokyo would not be pressured into striking a deal despite being a key player of the U.S. He says Washington overstretched itself by wielding the cudgel of tariffs and thus describes the situation as “economic coercion.”
China Replaces Trade Envoy Amid Deepening Tensions
While Japan has direct interaction with the U.S., China does not appear to be involved in the negotiation process. Beijing has not agreed to enter into official negotiations and requires the US to tone down its hostile rhetoric and name a special envoy for negotiations. To resolve the stalemate, the Chinese government appointed Li Chenggang as the new vice commerce minister and chief trade representative in replacement of Wang Shouwen.
Relations between the two powers remain all the time strained. On Tuesday, the White House said that it is ready to impose tariffs as high as 245% on certain products from China. The combined figure shows other duties such as the Section 301 tariffs, the fentanyl tariff, and proposed retaliatory tariffs. This came after another recent executive order that aims at protecting national security risks that come with the importation of critical minerals.
