Japan to get priority in trade talks after Trump-Ishiba call

WASHINGTON - Japan appeared set to get priority over other US trading partners in talks on tariffs, putting Tokyo at the head of a long queue of nations seeking to roll back US President Donald Trump’s reciprocal duties, which are scheduled to kick in on April 9.

Treasury Secretary Scott Bessent – who, along with US Trade Representative Jamieson Greer, will lead the American side of the negotiations – said he “would expect that Japan is going to get priority” among trading partners thanks to coming forward very quickly.

The push to hold bilateral trade talks comes as Japanese Prime Minister Shigeru Ishiba convened a full Cabinet meeting on the morning of April 8 to discuss the tariffs.

Ahead of the meeting, he reiterated how regrettable the US tariffs are and voiced his concerns over

the impact they would have on Japan’s huge car industry

.

“Needless to say... the auto industry is the very pillar of our economy. These tariffs could also leave a deep impact across various industries,” Mr Ishiba said ahead of the meeting.

Mr Trump hit Japan with a 24 per cent across-the-board reciprocal tariff, in addition to a 25 per cent car duty.

“I have very serious misgivings over the compatibility of the tariffs imposed by the US government with the WTO (World Trade Organisation) agreement and the Japan-US Trade Agreement,” Mr Ishiba added.

Shares in Japan jumped on the morning of April 8 on optimism the duties might be eased back. By mid-morning, the broader Topix had risen as much as 6.7 per cent, while the Nikkei 225 Stock Average gained as much as 6.2 per cent, the biggest intraday gains for both gauges since August. Futures for the S&P 500 and the Nasdaq 100 also rose. 

The meeting followed

a call between Mr Trump and Mr Ishiba

on April 7, where the latter said that the tariff measures would reduce the capabilities of Japanese companies to invest in the US. Mr Trump has vowed that his tariffs would encourage companies to move manufacturing to America.

Japan has yet to announce its point person for the trade talks. Economic Revitalisation Minister Ryosei Akazawa said he was not aware of a local media report that said he was selected for the role, while adding that he has not received such an order from Mr Ishiba. Trade Minister Yoji Muto said no specific names have been raised for the selection.

Mr Bessent, speaking on Fox Business, said that Japan maintains “quite high” non-tariff barriers, but expected a very productive set of negotiations with Japan.

As for timing, the treasury chief said: “There are 50, 60, maybe almost 70 countries now who have approached us. So it’s going to be a busy April, May, maybe into June.”

While Japan appears to be getting fast-tracked for trade talks, China is facing a dramatically different approach. 

Mr Trump has threatened to pile on an additional 50 per cent tariff on top of existing duties if Beijing does not back down from what he called “long-term trading abuses”. The move could have a seismic effect on the price of imports from the US’ third-largest trading partner. BLOOMBERG