Trump Claims 'Big Progress' in Surprise Japan Tariff Talks

U.S. President Donald Trump announced "big progress" after a surprise meeting with Japanese officials on tariffs, trade, and military cost-sharing. The talks, held in Washington, included Japan’s Economic Revitalization Minister Ryosei Akazawa, who aimed to focus discussions on trade and investment. However, Trump broadened the agenda to include Japan’s financial contribution to U.S. military bases, the largest overseas deployment of American troops.

Trump shared the update via social media, expressing optimism: “Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!” He was joined by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.

Trump’s recent tariff hike announcements, including a universal 10% rate and a paused 25% duty on Japanese cars, have sparked fears of global recession, inflation, and rising interest rates. Japan, impacted by a 24% levy on exports, has emphasized investment as a possible solution to ease tensions.

Akazawa hinted at potential Japanese investment in a multi-billion dollar gas project in Alaska, framing it as a way to show mutual economic benefits. Yet, Japan's Prime Minister Shigeru Ishiba said Tokyo won’t rush into a deal or make large concessions, warning against U.S. economic pressure.

Treasury Secretary Bessent is also seeking to address currency issues in talks, though Tokyo resists including exchange rate policies in trade negotiations. The U.S. has long criticized Japan’s trade surplus and alleged currency manipulation, which Tokyo denies.

Trump’s tariff diplomacy continues this week, with meetings planned with South Korea and Italy. Over 75 nations have requested talks, but Japan may face added pressure as one of the first to enter negotiations. With both sides seeking leverage, the path to a balanced deal remains uncertain.