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Japan appeared on Tuesday as the first major economy to secure tariff advantages with Donald Trump, highlighting her status as a Larger Washington credit and investor and causing a 7 percent increase in Tokyo listed.
The dance of the net capital market, which almost completely overturned the widespread Monday fall of Japanese stock, followed a 25-minute conversation between the US President and the Prime Minister of Japan Shigeru Ishiba, in which leaders agreed to open negotiations.
Following the call, Trump posted on his social platform of truth that Japan had treated the “very poor” US in trade. “They don’t get our cars, but we get millions of them. Likewise agriculture, and many” other things. “All must change, but especially with China !!!”
Ishiba appointed his Minister of Economic Revitalization Ryosei Akazawa as the Japan negotiator chief for the talks that officials in Tokyo are waiting to start “very quickly”, reflecting the country’s need to protect its automotive industry, on which a considerable part of the economy is built.
The US side will be led by Treasury Secretary Scott Bessent, along with US Trade Jamieson Greer. Bessent told Fox News on Monday that he would expect Japan to take precedence as they came out very soon. “
Akazawa told reporters on Tuesday that Bessent’s role as the head of the American delegation suggested that the White House “has a strong interest in the areas he oversees.”
These remarks caused expectations among investors that in addition to tariffs, negotiations would also focus on the dollar exchange rate, which has emerged as a source of strife for the Trump administration.
“The Bank of Japan is strongly independent, but while Japan requires a way to mitigate these steep tariffs, there will be pressure on it by the central government to accelerate the rise in interest rates and send the higher yen,” Neil Newman, the head of the Japan advisory Astris.
Japan, who considers himself the closest ally of Washington in Asia, were amazed last week by Trump’s announcement of a 24 percent fee for its imports, except for the 25 percent tax tax. Ishiba has called the measures a “national crisis” for Japan.
Analysts warned that tariff load would be catastrophic for Japan, which-all long-term investments in US-based production-many exports and relies on relatively low friction trade.
Ishiba reminded Trump on Monday about his country’s status as the largest foreign investor in the US, and warned that the corporate investment influx was at risk of threatened taxes.
Takeshi Yamaguchi, Japan economist at Morgan Stanley Mufg Securities, said American Tensions can potentially serve as a turn for US-Japan negotiations.
“Japan will have to propose a package to reduce the deficit given that the US administration views it as a problem,” Yamaguchi said. He suggested opportunities such as increasing imports of US agricultural products, protection and energy equipment, and a commitment to coordinate with the US in case of excessive depreciation.
In a further signal of the US opening, Trump on Monday ordered a new summary of national Nippon Steel’s proposed $ 15 billion Steellik -based Pennsylvania. The review, which will be led by the Treasury Department, will make a Trump recommendation within 45 days.
Joe Biden had blocked taking over in one of his last acts in office. Trump had also signaled the opposition of a full receipt.
But Nippon Steel executives have negotiated with American Trade Secretary Howard Lutnick on the framework and conditions of an agreement in which the Japanese group would receive a majority of shares in the American steel manufacturer, according to two people familiar with the issue.
Nippon Steel’s shares increased up to 10.5 percent on Tuesday morning before the afternoon profits were allocated to trade 6.3 percent.
In a statement, the company said that “barely awaits a solution in time in order to start making our planned investments that will position the US Stelelik to be a leading global steel manufacturer.”
