Japan's Tariff Envoy Heads to U.S. for Round Two of Talks
The representative for Tokyo's tariffs left on Wednesday for a second round of talks in Washington, D.C., where Japan might propose adjustments like modifying car import processes to gain exemptions from Donald Trump’s trade duties.
Ryosei Akazawa might allegedly propose purchasing additional U.S. corn and soybeans, or engage in talks about exploring liquefied natural gas (LNG) reserves in Alaska.
As a crucial U.S. ally and its largest investor, Japan faces the same 10 percent base tariffs applied to many nations, along with higher duties on automobiles, steel, and aluminum products.
Trump also announced "reciprocal" tariffs on Japan of 24 percent, but later put them on pause for 90 days along with those on other nations except China.
On Thursday, Akazawa will engage in discussions with US Treasury Secretary Scott Bessent and other officials, after their first encounter in mid-April.
He stated on Monday that their position remains unchanged: they firmly insist that all tariffs should be eliminated. Their primary objective is to accomplish this, and they cannot compromise.
At the airport on Wednesday, he informed journalists that "Japanese firms are facing losses daily" due to the American tariffs.
He mentioned that when he talked to the CEO of an automobile company, the individual stated they were losing a million dollars each hour.
I aim to advance, even if just by one or two steps," through fostering a "mutually beneficial partnership.
Trump has complained about Japan's safety testing rules for US vehicle imports, and local media said simplified screening processes could be a bargaining chip for Tokyo.
Liquefied natural gas and agricultural imports might also be up for discussion.
However, purchasing additional U.S. rice — which is anticipated as another possible solution — might pose “political challenges” due to Japanese farmers being a significant backing group for the governing political party, according to Norihiro Yamaguchi from Oxford Economics who spoke with Romero.my.id.
Trump has repeatedly said he wants a stronger yen to make US exports more competitive, although Akazawa said the Japanese currency was not discussed at the first talks.
"I don't actually do much reading from it, particularly in the currency market, as making significant surprises tends to amplify issues," Yamaguchi stated.
The yen has surged considerably since Trump introduced his tariffs — on Wednesday, it was exchanging at around 142 per dollar, as opposed to 158 in mid-January.
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