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American Focus > Blog > Economy > Donald Trump weighs in on Japan trade talks but Tokyo team leaves without deal
Economy

Donald Trump weighs in on Japan trade talks but Tokyo team leaves without deal

Last updated: April 17, 2025 12:11 am
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Donald Trump weighs in on Japan trade talks but Tokyo team leaves without deal
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Japan’s chief trade negotiator, Ryosei Akazawa, recently met with President Donald Trump in an effort to negotiate the removal of stiff US tariffs. Despite the meeting, Akazawa left Washington without an immediate agreement in place.

President Trump took to social media to announce “Big Progress!” following the meeting, as Japan aims to secure relief from the tariffs that have caused turmoil in the global economy. The unexpected personal meeting with Trump was seen as a positive sign of the president’s willingness to engage in trade negotiations with allies, amid China’s efforts to expand its global trade relationships.

Akazawa expressed disappointment over the tariffs and emphasized the need for a swift resolution that would benefit both economies. He thanked President Trump for meeting with his delegation, which also held discussions with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.

The talks between the US and Japan are closely monitored by governments worldwide for insights into Trump’s trade strategy amid escalating global trade tensions. Japan, as America’s top investor outside of the US and a key ally in Asia, has much at stake economically and in terms of security if relations with Washington deteriorate.

The US has already imposed a 25% tariff on Japanese cars, steel, and aluminum, and has rejected multiple requests for exemptions from Tokyo. The possibility of an additional 24% levy under Trump’s “reciprocal” tariff policy has rattled Japanese corporations and prompted Prime Minister Shigeru Ishiba to declare a “national crisis.”

See also  Dow, S&P 500, Nasdaq wobble, oil prices rise as Wall Street weighs Iran's next move

Ishiba highlighted Japan’s potential advantage in trade negotiations being a top priority for Trump but cautioned that the negotiations would not be easy. Trump hinted at discussing whether Japan should contribute more financially to hosting US military forces, criticizing the current defense treaty as “unfair.”

Japan currently pays approximately $1.4 billion annually to support US military bases in the country. The next round of talks could involve Japan committing to higher defense spending, leading to a boost in shares for Japanese defense contractors like IHI, Kawasaki Heavy Industries, and Mitsubishi Heavy Industries.

While the recent discussions did not address foreign exchange issues and the weak yen, Akazawa stated that separate talks on these matters would be held between Bessent and Japan’s Finance Minister Katsunobu Kato. Japan reiterated its stance that it was not manipulating markets to weaken the yen.

In conclusion, the trade negotiations between the US and Japan are crucial for both countries and have significant implications for global trade dynamics. Stay informed on the latest developments by signing up for the White House Watch newsletter.

TAGGED:dealDonaldJapanLeavesTalksTeamTokyoTradeTrumpWeighs
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