Japan’s top trade negotiator Ryosei Akazawa is heading into the latest round of trade negotiations with the US with some added momentum, following a phone call between Prime Minister Shigeru Ishiba and President Donald Trump. 

“They talked two weeks in a row, and the atmosphere seems to be very friendly,” Akazawa told reporters in Washington on Thursday evening. “I believe that a sense of rapport and mutual trust is growing between them. With that in mind, I intend to approach the negotiations with confidence.”

Akazawa landed in the US shortly after Ishiba initiated the 25-minute phone call with Trump on Thursday, less than a week after the pair’s last call. The frequency suggests a degree of progress behind the scenes as the two eye a trade agreement in time for their expected meeting during the Group of Seven leaders’ summit in Canada in mid June. Ishiba said he could also visit the US before the summit if needed, though Akazawa noted that time was fairly tight for that possibility.  

So far Akazawa hasn’t had much to show for the past three rounds of talks beyond succeeding in separating out discussions over currencies to a different channel where the two sides are broadly agreeing to keep past stances in place. But as the US’ punishing tariffs hit Japan’s key industries including cars, the Asian nation continues to see profit losses among its largest firms as long as negotiations continue without relief.

Akazawa said he plans to meet US Treasury Secretary Scott Bessent on Friday, after Bessent was absent from last week’s meeting. Japanese local media report that Akazawa may also try to secure more time with US officials at an international conference in France next week. 

Trump is also set to hold a rally in Pittsburgh on Friday to tout the latest development over Nippon Steel Corp’s bid to buy US Steel Corp as a win for his tariff campaign. Trump’s about-face to support the deal is seen as a tailwind for Tokyo as it seeks reprieves from the punishing tariffs that raise the risk of a technical recession for the Asian nation. 

“We have consistently said investment is more important than tariffs and by investing in the US, we can create jobs there,” Ishiba told reporters in Tokyo on Thursday evening. “Japan and the US will collaborate to create better products and build a win-win relationship. There has been no change whatsoever in Japan’s position.”

As with other nations, Trump slapped Japan with a 25% tariff on autos, steel and aluminium and so-called reciprocal tariffs. Barring a deal, the across-the-board levy would return to 24% from the current 10% in early July. 

The two sides also exchanged views to enhance cooperation on diplomacy, security and economy, Ishiba said after the call.

The trade talks continue to proceed despite a US court ruling that declared the Trump tariffs illegal. Japanese officials refrained from commenting on the potential impact of the ruling for the bilateral talks while saying Japan will examine the content. 

“I will not discuss diplomatic matters here,” Ishiba said. “However, I personally believe that our mutual understanding has deepened.”

Source: Bloomberg

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports