Trump joins tariff talks with Japan as the United States seeks deals in the trade war | World News

WASHINGTON: U.S. President Donald Trump inserted himself directly into trade talks with Japanese officials on Wednesday, amid U.S. tariffs that shocked the economy and made the government assured the public that a deal would be settled soon. The Republican president joined Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, and the top economic adviser played a major role in his trade and tariff policies.

“Hopefully, it can solve Japan and the United States well (great!)!” Trump wrote in a social media post before the meeting. Afterwards, he said: “It is an honor to have just met a trade delegation with the Japanese delegation. The president’s choice to participate directly in the negotiations shows that he hopes to quickly finalize a series of trade agreements as China is pursuing its own agreement. This is an open test of Trump’s reputation as a trader, as countries around the world try to limit the potential damage caused by their import taxes.

The full tariffs announced by Trump on April 2 have caused panic in financial markets and fear of recession, which has prompted the U.S. president to quickly occupy a part of 90 days of import taxes and raise his already steep tariffs on China to 145%. The suspension temporarily escaped Japan from the 24% full-slab tariff, but the benchmark tax rate was still 10%, and the export tax on imported cars, auto parts, steel and aluminum was levied at 25%.

With Japan’s average tax rate on goods in other countries at 1.9% and a long-term alliance with the United States, the talks on Wednesday were a crucial indicator of whether the Trump administration could reach meaningful deals to reassure the market, U.S. voters and foreign allies.

Meanwhile, U.S. economic rival China is trying to capitalize on the turmoil surrounding Trump’s announcement, with its leader Xi Jinping President XI Jinping, a tour in Southeast Asia and elevating its country as a more reliable trading partner. Japan was one of the first countries to start open negotiations with Trump in the United States, with other administration officials saying the calls have been “hanging up” and dozens of countries called for strikes with the president, seeing themselves as general negotiators to avoid tariffs at the end of the 90-day pause. Israel and Vietnam have proposed to zero their tariff rates, but Trump is not viable enough.

On Thursday, Trump plans to meet with Italian Prime Minister Giorgia Meloni, who will likely convey information on behalf of the EU on how to resolve Trump’s tariffs on the 27-state group. Still, the U.S. president may also feel pressure from domestically to address all taxes, as many voters say they are returning Trump to the White House with a specific goal of improving the economy. California Gov. Gavin Newsom filed a lawsuit Wednesday that Trump has surpassed his power by declaring an economic emergency to impose tariffs, Democrats said in a statement that the tariffs have caused economic chaos.

Fed Chairman Jerome Powell said Wednesday that Trump’s tariff policy would damage the U.S. economy, a direct warning to the White House to try to test the import tax as a long-term positive for the country. “The levels of tariffs announced so far are significantly greater than expected, and the economic impact may be correct, including higher inflation and slower growth,” Powell said at the Chicago Economic Club.

Like many other countries, Japan is trying to minimize the economic impact of Trump’s tariffs, but is still striving to get a response. It set up a special task force to assess the impact of tariffs and provide loans to anxious companies. Although Prime Minister Shigeru Ishiba has been working to coax Trump’s immunity, the administration has little clarification on the concessions that might be offered in these talks.

The government’s Q&A is not transparent about its questions and answers. The Trump administration is seeking to end the $68.5 billion trade deficit with Japan and seek more U.S. goods in foreign markets, but the president also insists that tariff revenues can be used to repay the federal budget deficit.

“Japan is here to negotiate the costs of tariffs, military support and trade fairness today,” Trump said in a release on Wednesday. U.S. officials met with Japan’s chief trade negotiator and Secretary of Economic Revitalization Ryosei Akazawa in Washington. “I’m ready for the talks,” Akizawa told reporters at Hanida Airport in Tokyo before boarding the flight. “I will negotiate to firmly protect our national interests,” he said, both Bessent and U.S. Trade Representative Jamieson Greer “are known as biological and professionals” and he hopes to build a relationship of trust with them.

“I believe we can negotiate a win-win relationship well, which will bring national benefits to Japan and the United States,” he said.
Japan argues that Trump’s tariff measures may violate bilateral trade agreements or World Trade Organization rules. Although Ishiba said he opposed retaliatory tariffs, he also said he was unwilling to rush to seek reconciliation because he did not want to give in.