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In a recent development, Japan’s leading trade negotiator traveled to Washington, marking the first such visit since former President Donald Trump enforced significant tariffs. These talks aim to outline the United States’ expectations and provide insights into the administration’s motivations behind its trade war.
As the first in line for negotiations with U.S. officials, Tokyo seeks to avoid the severe “liberation day” tariffs imposed by the Trump administration on numerous countries. These tariffs, announced on April 2 but delayed by 90 days due to financial market instability, threaten to trigger a global trade conflict.
Diplomats indicated that Japan’s position as a “guinea pig” in these trade discussions could offer an advantage over other nations, while also testing the U.S. administration’s willingness to impose measures on allies and adversaries. Japan ranks among the top ten nations with a significant trade surplus with the United States.
An individual involved in the talks preparation stated that Japan’s front-line role may not be comfortable, but its contribution lies in clarifying President Trump’s intentions amid uncertainties and trade war rhetoric.
Takeshi Niinami, chair of the Japan Association of Corporate Executives, remarked that the negotiations would serve as a “showcase” of how the Trump administration conducts trade discussions involving countries, markets, and businesses.
During a two-day trip, Ryosei Akazawa is scheduled to converse with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. This visit follows Japan’s Prime Minister Shigeru Ishiba’s declaration of a “national crisis” in response to potential trade impacts.
The implementation of a 24 percent “reciprocal tariff” by Trump on Japan has caused tension, given Japan’s status as a strong military ally and major foreign investor in the U.S. over the past five years. Despite a temporary pause, Japan still faces a 25 percent tariff on car exports to the U.S., in addition to a 10 percent baseline levy affecting most U.S. trading partners.
Niinami noted the selection of Bessent as the chief U.S. negotiator underscores the importance of addressing Japan’s currency fluctuations and stabilizing the U.S. Treasuries market, where Japan holds substantial foreign currency reserves.
Individuals familiar with the situation highlighted several U.S. priorities for the talks. Key issues include increasing Japan’s import of liquefied natural gas, expanding U.S. agricultural market access in Japan, and resolving vehicular safety standards that hinder U.S. automotive sales to Japan.
The U.S. Treasury did not comment on the administration’s specific goals for these discussions.
Tokyo officials expressed readiness to discuss various topics, including purchasing more U.S. weapons, investing in U.S. infrastructure, and collaborating on shipbuilding.
In 2019, Japan’s then-Prime Minister Shinzo Abe, known for his close rapport with Trump, quickly negotiated a trade deal with the U.S. This agreement eased some restrictions on American agricultural products and established digital commerce terms. Trump praised the deal as “phenomenal,” while Abe portrayed it domestically as evidence of strong U.S.-Japan relations.
Niinami emphasized that Japan, equipped with more leverage this time, will prioritize addressing U.S. auto tariffs, which present a significant challenge.
Matt Goodman, an expert on U.S.-Japan economic relations, believes Japan’s focus will be on obtaining a suspension of automotive tariffs. However, he notes that reducing auto tariffs will require considerable effort to persuade Trump.
Tobias Harris, founder of Japan Foresight, commented on the lack of clarity regarding U.S. objectives, suggesting Japan and Ishiba face difficulties surpassing those encountered under Abe’s administration.
Harris expressed doubt over quick agreements, particularly on agriculture, given the current unfavorable conditions and Japan’s unwillingness to hastily concede.
Jeff Kingston, a U.S. foreign policy expert at Temple University in Japan, noted the heightened stakes in negotiations due to Japan’s concerns about U.S. regional stability commitments in Asia, where it plays a significant security role. Recent U.S. actions, particularly regarding Russia’s invasion of Ukraine, have raised Japanese concerns over potential U.S. military engagements in Asia.
Japan’s economic dependency on exports exposes it to global economic downturns and disruptions in the international rules-based order.
Kingston highlighted Japan’s need to balance domestic expectations while ensuring favorable relations with the Trump administration, acknowledging Japan’s disadvantage in employing uncertainty as a negotiation tool.
