US President Donald Trump has claimed significant progress in trade talks with Japan after unexpectedly getting involved in the discussions, as ongoing uncertainty surrounding his imposed tariffs continues to impact stock markets.
Trump made these comments on Wednesday after surprising everyone by attending negotiations between his administration and Japanese officials in Washington, DC.
On Truth Social, Trump stated, “A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!” The negotiations were attended by US Treasury Secretary Scott Bessent, US Commerce Secretary Howard Lutnick, and Japanese Economic revitalization minister Ryosei Akazawa.
According to Akazawa, Trump aims to reach a deal before the end of the 90-day pause on his “reciprocal” tariffs. Akazawa expressed Japan’s desire to reach an agreement as soon as possible.
Japan, a key US security ally and its fourth-largest trade partner, has been affected by a 10 percent baseline tariff and duties of 25 percent on cars, steel, and aluminum. Additionally, Japan faces a 24 percent “reciprocal” tariff under Trump’s “liberation day” duties, which has been paused until July 9 for most countries.
Martin Schulz, a chief policy economist at Fujitsu in Tokyo, emphasized the close integration of Japan’s industry in the US economy, highlighting concerns about the trade talks. Schulz believes that although there can be no winners in a trade war, there is optimism for achieving agreeable results. Japan is the largest investor in the US and is looking to invest further.
Schulz added that if both economies can maintain a growth track, increased imports from the US become possible.
These US-Japanese talks took place amid heavy losses on Wall Street due to ongoing uncertainty regarding Trump’s trade policies. The benchmark S&P 500 closed down 2.24 percent on Wednesday, while the tech-heavy Nasdaq Composite fell 3.07 percent.
Jerome Powell, Chair of the US Federal Reserve, also warned that Trump’s steep tariffs could lead to weak growth, rising unemployment, and higher inflation simultaneously. Powell referred to the US central bank’s goal of maximum employment and stable prices.
US stocks have experienced significant fluctuations since Trump’s inauguration in January, with sharp dips and jumps resulting from his constant tariff announcements. Financial markets and businesses eagerly await signs that Trump will reduce or scrap his tariffs in exchange for concessions from US trading partners.
Officials from the Trump administration have stated that over 75 countries have reached out to begin negotiations on trade. Following the latest losses on Wall Street, the S&P 500 and Nasdaq have declined by around 10 percent and 15 percent, respectively, since the beginning of the year.
Asian stock markets had a better start on Thursday, with Japan’s benchmark Nikkei 225, South Korea’s KOSPI, and Hong Kong’s Hang Seng index all rising by more than 0.5 percent in early trading.
Source: https://www.aljazeera.com/economy/2025/4/17/trump-touts-progress-in-japan-trade-talks-as-uncertainty-roils-stocks?traffic_source=rss
