Tokyo's envoy departed for Washington on Wednesday for US tariff discussions. The envoy expressed confidence in achieving a mutually beneficial outcome while safeguarding Japan's interests. AKAZAWA Ryosei's visit could establish a precedent for other nations negotiating with the US administration.
Akazawa, the economic revitalisation minister, stated his belief in building trust and conducting productive negotiations. Despite being a major investor in the US, Japan has faced tariffs on car, steel and aluminum imports. Trump recently suspended his 24 percent reciprocal duty on Japan, along with tariffs on other countries.
Akazawa was scheduled to meet Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer on Wednesday. Potential topics include purchases of US defense hardware and natural gas from Alaska. Akazawa aims to protect Japan's national interests in discussions with Bessent and Greer.
The Daiwa Institute of Research cautioned on Wednesday that Trump's reciprocal tariffs could decrease Japan's real GDP by 1.8 percent by 2029. US officials are also planning talks with South Korea and others. An analyst at SPI Asset Management described the Japan discussions as a bellwether for tariff negotiations.
The analyst suggested that a deal with Japan, even a partial one, would set a template. Failure to reach an agreement could lead other nations to anticipate confrontation. Japan remains the largest holder of US Treasuries, providing significant leverage.
Top Japanese officials, including Ishiba, dismissed claims of deliberately creating volatility in the US Treasury market. They stated such actions are not characteristic of allies, in response to Trump's tariff pause.