Tokyo sent its Economic Revitalization Minister Ryosei Akazawa to start negotiations, hoping to face Trump’s Treasury Secretary Scott Bessent, and hopes to limit the scope of discussions to the scope of trade and investment matters.
But Trump weighed it earlier on Wednesday, saying he would also solve the problem there, including Tokyo paying for the U.S. military in Japan, the world’s largest overseas deployment.
“Japan is here to negotiate tariffs today, the cost of military support and ‘trade equity’,” he said in a post about the Truth Society.
“I’m going to attend the meeting with the Treasury Secretary. Hopefully some things will be resolved, which is great for Japan and the United States (great!)!”
Bessent also hopes to discuss tricky exchange rate issues with Japan, one of the first to start face-to-face negotiations since Trump announced huge tariffs to dozens of countries (friends and enemies). Japan’s tax on U.S. exports were subject to a 24% tax, although these rates were suspended for 90 days, like most Trump’s tariffs. However, the prevalence rate remains 10%, and so is the responsibility for 25% of the pillar cars that export similar economy to Japan. Bessent said it was considering Washington said there were “first-time promoters” who asked for talks by 75 countries. But Japanese Prime Minister Shigeru Ishiba said on Monday that his country is an ally close to us and will not rush to reach a deal or intend to make big offers.
Currently, Ishiba has ruled out countermeasures to US tariffs.
“The difficulty for the Japanese team is that the United States creates a lot of leverage for itself,” said Kurt Tong, managing partner at the Washington-based consulting firm Asia Group.
“The United States is willing to not attack Japan with sticks, and Japan is trapped in a position that provides a lot of carrots. From their perspective, it feels like economic coercion.”
Trump has long complained about the U.S. trade deficit with Japan and other countries, saying U.S. businesses are at a disadvantage due to trade practices and other countries’ intentions to work.
Tokyo denies that it manipulates its yen currency to gain an advantage.
Washington’s trading partners
Bessent met with Vietnam’s deputy prime minister last week to discuss trade and invited South Korea’s finance minister to negotiate in Washington. Italian Prime Minister Giorgia Meloni will meet with Trump at the White House on Thursday to discuss tariffs imposed on the EU.
The full scope of the discussion on Wednesday is unclear.
Bessent said he hopes to reach a deal to cover tariffs, non-tariff barriers and exchange rates, although Tokyo lobbies to separate the latter.
Billion dollar gas projects that Japan may invest in Alaska may also be emerging, Bessent said.
Japan hopes to say ahead of the U.S. departure that pledges to expand investment in the U.S. will help convince the U.S. to achieve a “win-win” situation.
