Japan Cautious as Trump Hails 'Big Progress' in Key Test of Tariffs

Japanese Prime Minister Shigeru Ishiba has warned that negotiations with the White House would be difficult after President Donald Trump hailed "big progress" in the first round of talks between the two sides over trade and security ties.

Why it Matters

Negotiations such as those with Japan are a key test of Trump's hard-line tariff policy, which he has said will either bring about much better deals for the U.S. with its partners across the world or draw more investment into domestic production.

Japan is among the first countries to start open negotiations with the U.S. The president and other administration officials said the phones have been "ringing off the hook" with dozens of countries calling, eager to strike deals.

What to Know

"Of course, the negotiations will not be easy going forward, but President Trump has stated that he wants to give top priority to the talks with Japan," Ishiba said after Wednesday's talks with the U.S., which Trump attended, Reuters reported.

Ishiba said he had "received reports that frank and constructive discussions were held over a considerable period of time," Japan's Yomiuri Shimbun reported, adding: "I believe that the discussions will lead to further progress."

He said he would also visit the U.S. at the "most appropriate time" to negotiate directly with Trump, depending on the progress of future talks.

Ahead of the meeting in Washington D.C. on April 16, attended by Ryosei Akazawa, Japan's minister for economic revitalization, Trump said "trade fairness" and the "cost of military support" were both on the table.

Trump has previously criticized a long-standing security agreement with Japan that allows American military bases there in exchange for a U.S. commitment to defend its East Asian ally if it comes under attack. He called it a "very interesting" deal.

"We have to protect Japan—and, by the way, they make a fortune out of us economically. We have to protect Japan, but under no circumstances do they have to protect us," Trump said in March.

It echoes similar criticisms Trump has made of the European Union (EU), saying it benefits from the protection of American military might through NATO while putting up unfair trade barriers that shut out U.S. businesses, a characterization the EU refutes.

As Akazawa headed to Washington, Ishiba told Japan's parliament that he was not considering "big concessions" for the sake of securing a quicker deal, and said he wanted to understand both the logic and emotion behind Trump's argument.

Akazawa told reporters before boarding his flight to the U.S. that he was prepared for the talks and "will negotiate in order to firmly protect our national interest."

Japan Faces Tariffs as US Trade Surplus Bloats

Trump said on April 2 that he planned to impose a 24-percent tariff on imports from Japan as part of an announcement of higher "reciprocal" duties on dozens of countries, intended to reflect trade barriers faced by the U.S.

After financial markets panicked, he put a partial 90-day hold on the import taxes to allow for trade negotiations like those currently taking place with Japan, with the exception of China, whose tariffs he increased sharply.

Some Chinese imports now face a total tariff of up to 245 percent.

Japan still faces a 10-percent baseline tariff and a 25-percent tax on imported cars, auto parts, steel, and aluminum exports.

It recorded a trade deficit in its March-April fiscal year, but racked up a surplus with the U.S., according to provisional data from the Japanese Finance Ministry.

Japan's global trade deficit totaled 5.2 trillion yen ($36.5 billion) for the fiscal year through March, for the fourth straight year of deficits. The surplus with the U.S. ballooned to 9 trillion yen ($63 billion).

What People Are Saying

President Donald Trump posted to Truth Social after his Japan talks: "A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!"

Kurt Tong, managing partner at The Asia Group, a Washington-based consultancy, told Reuters: "The difficulty for the Japanese team is that the United States has created a huge amount of leverage for itself, unilaterally.

"The U.S. is offering to not hit Japan with sticks, and Japan is stuck in a position of offering a whole lot of carrots. And from their perspective, it feels like economic coercion."

What's Next

There will be further negotiations between Japan and the U.S., with the potential for those to develop into direct talks between Trump and Ishiba, depending on the progress. While expressing optimism about their potential, Ishiba warns the talks won't be easy.

This article includes reporting by The Associated Press.