Trump reports ‘big progress’ in tariff talks with Japanese officials

WASHINGTON/TOKYO – US President Donald Trump said there was “big progress” when he made the surprise move on April 16 to negotiate directly with Japanese officials about the barrage of tariffs he has imposed on global imports.

“A Great Honour to have just met with the Japanese Delegation on Trade. Big Progress!” he said in a social media message that contained no details of the discussions.

Tokyo sent its Economic Revitalisation Minister Ryosei Akazawa to kick-start the talks

, and he was due to brief reporters about the Washington meeting.

The Japanese official had hoped to limit the discussions to trade and investment matters. But Mr Trump weighed in, saying he would also be there to raise issues including how much Tokyo pays towards hosting US troops in Japan, the biggest US 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!”

US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick participated along with other officials.

Mr Trump’s announcement earlier in April of sharp tariff increases on trading partners worldwide has ignited worries about the risks of a recession, higher inflation and rising interest rates and sent financial markets reeling.

Mr 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 Mr Trump announced sweeping duties on dozens of countries - both friend and foe - earlier in April.

Japan has been hit with 24 per cent tariffs on its exports to the US

although these rates have, like most of Mr Trump’s tariffs, been paused for 90 days. But a 10 per cent universal rate remains in place as does a 25 per cent duty for cars, a mainstay of Japan’s export-reliant economy.

Mr Bessent said there is a “first mover advantage” given that Washington has said more than 75 countries have requested talks.

However, Japanese Prime Minister Shigeru Ishiba said on April 14 that his country, a close US ally,

will not rush to reach a deal

and does not plan to make big concessions.

Mr Ishiba has, for now, ruled out countermeasures to the US tariffs.

“The difficulty for the Japanese team is that the United States has created a huge amount of leverage for itself, unilaterally,” said Mr Kurt Tong, managing partner at The Asia Group, a Washington-based consultancy.

“The US 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 Mr Tong, a former US State Department official.

Mr Trump has long complained about the US trade deficit with Japan and other countries, saying US businesses have been disadvantaged by trade practices and intentional efforts by other countries to maintain weak currencies.

Tokyo denies that it manipulates its yen currency to gain advantage.

Trade partners in Washington

Mr Bessent met Vietnamese Deputy Prime Minister Ho Duc Phoc last week to discuss trade and has invited South Korean Finance Minister Choi Sang-mok to Washington for talks next week.

Italian Prime Minister Giorgia Meloni will meet Mr Trump at the White House on April 17 to discuss tariffs imposed on the European Union.

The full scope of the April 16 discussions was not yet clear.

Mr Bessent has said he hopes to strike deals that would cover tariffs, non-tariff barriers and exchange rates, though Tokyo had lobbied to keep the latter separate.

Possible Japanese investment in a multi-billion-dollar gas project in Alaska could also feature, he has said.

Japan hopes that pledges to expand investment in the US will help to convince Washington that the two countries can achieve a “win-win” situation without tariffs, Mr Akazawa said ahead of his departure. REUTERS