Latest news with #tariffnegotiations
NHK
3 days ago
- Business
- NHK
Japan's negotiator to head to US for another round of tariff talks
Japanese Economic Revitalization Minister Akazawa Ryosei is set to leave for Washington on Thursday for another round of tariff negotiations with the United States. Akazawa is scheduled to meet US Treasury Secretary Scott Bessent on Friday, local time. On Wednesday, Akazawa met with Japan's Chief Cabinet Secretary Hayashi Yoshimasa, who coheads the government's tariff task force with him, to confirm how to proceed with the negotiations. Akazawa told reporters that they discussed the final details and that he will negotiate firmly with the US side according to what was discussed. Japan views that in order to make progress in the tariff talks, it is essential to win over Bessent, as President Donald Trump is said to have great confidence in him. Bessent did not attend the previous negotiations last week. The Japanese government is making final arrangements for a new proposal. Based on Trump's previous remarks, it reportedly includes plans for expanding investment in the US and cooperation in shipbuilding. Japan is also expected to propose measures to make it easier to import US vehicles as Trump has been calling for a reduction of the trade deficit between the countries.
Japan Times
23-05-2025
- Business
- Japan Times
Ishiba and Trump speak as Akazawa heads to Washington
Prime Minister Shigeru Ishiba spoke with U.S. President Donald Trump on Friday morning in a call initiated by the president, offering hope of a breakthrough in tariff negotiations between Japan and the United States. It was the second phone call between the two leaders since early April . During the 45-minute conversation, the leaders exchanged views on the tariff negotiations, cooperation on economic security and the U.S. president's recent trip to the Middle East, Ishiba told reporters after the call. The call was proposed by Trump, Ishiba said. While they did not go into a point-by-point discussion of the tariff negotiations during the call, Ishiba said he felt they reaffirmed common ground on a number of issues. Stay updated on the trade wars. Quality journalism is more crucial than ever. Help us get the story right. For a limited time, we're offering a discounted subscription plan. Unlimited access US$30 US$18 /mo FOREVER subscribe NOW 'I believe what was confirmed throughout the call was the intention on both sides to work hard and build a win-win relationship," Ishiba said. 'I truly felt that we shared many common understandings and reaffirmed our shared awareness on a variety of issues.' The call was made while Japan's chief tariff negotiator, Ryosei Akazawa, was en route to Washington to attend the third round of high-level tariff talks with his American counterparts. At the previous meeting earlier in May , the two sides agreed to hold high-level talks 'intensively' from mid-May onward. 'I expressed hopes that these talks will be productive, and President Trump agreed with that sentiment,' Ishiba said, adding that they both look forward to an in-person meeting next month, which is set to take place during the Group of Seven meetings in Canada. Chief tariff negotiator Ryosei Akazawa speaks to reporters at Haneda Airport in Tokyo on Friday before flying to Washington for a third round of high-level tariff talks with his U.S. counterparts. | Jiji News reports suggest that the two sides are eyeing the G7 meeting as a likely setting to announce a framework trade deal. After the call, Ishiba said he might also visit the U.S. at some point depending on the circumstances, although no specific schedule has been set yet. 'Our position — that we have consistently called for the removal of the tariff measures — remains unchanged,' Ishiba told reporters after the call. The clock is ticking for Akazawa, who arguably has the toughest job in Japan as he tries to get the United States to agree to a trade ceasefire. A 24% 'reciprocal tariff' on almost all Japanese exports to the U.S. will kick in again if no agreement is reached by early July. Much hinges upon his ability to persuade Washington to bring the 25% levies on automobiles and auto parts into the negotiations. While the U.S. has only shown willingness to negotiate the higher-rate 'reciprocal' tariffs, Japan has resolutely rejected the idea of a deal that does not include all the levies in place. Japan's position remains unchanged in calling for the U.S. to review the tariff measures, Akazawa told reporters before boarding the plane on Friday morning. He had said earlier this week that when Japan asks the U.S. to review the tariffs, it wants the U.S. to eliminate them . 'An agreement cannot be reached unless it is mutually satisfactory — a true win-win,' Akazawa told reporters at Haneda Airport in Tokyo before boarding the plane on Friday morning. 'We must listen carefully to the various proposals and ideas from the U.S. side, and work to find common ground between our respective positions.'
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Citi (C) Sees Dollar Decline Following Tariff Softening at G-7 Meeting
Citigroup (C) expects the U.S. dollar to weaken following discussions at this week's Group-of-Seven meeting, as global leaders tackle currency issues tied directly to trade negotiations and tariff reductions. Citi analysts led by Osamu Takashima believe Washington is positioning for a subtle depreciation of the greenback, especially as tariff agreements ease tensions with East Asian trade partners. Currency policy has become a significant focus at the G-7 summit, with South Korea, Taiwan, and Japan engaging directly with U.S. officials on the topic. Japan's Finance Minister is slated for bilateral meetings with Treasury Secretary Scott Bessent, heightening expectations that the U.S. will press for currency appreciation among key trade partners as part of broader tariff negotiations. Market Overview: U.S. dollar expected to weaken following G-7 meetings. Currency appreciation a potential condition for reduced tariffs. East Asian nations primary focus in currency discussions. Key Points: Citi forecasts dollar depreciation as tariffs are rolled back. U.S. likely targeting Japan and China's currency policies. Role of central banks emphasized by Treasury Secretary Bessent. Looking Ahead: Dollar poised for further declines pending trade clarity. Future U.S. interest rates influenced by currency reserve policies. Tariff negotiations to significantly shape FX market sentiment. Bull Case: If the U.S. successfully encourages trade partners like Japan and China to allow their currencies to appreciate as part of tariff reduction deals, it could boost the competitiveness of U.S. exports and help reduce the U.S. trade deficit. A more balanced global currency landscape, potentially facilitated by G-7 discussions, could lead to smoother trade relations and reduced market volatility in the long run. A weaker U.S. dollar, as forecasted by Citi, could make U.S. goods and services more attractive internationally, potentially benefiting U.S. multinational corporations and export-oriented industries. The focus on central bank investment strategies for foreign currency reserves influencing U.S. interest rates, rather than direct intervention, suggests a more market-driven approach to currency adjustments. Successful negotiations leading to tariff rollbacks and managed currency adjustments could signal a de-escalation of trade tensions, fostering a more stable global economic environment. Bear Case: A weakening U.S. dollar, as anticipated by Citi and already evidenced by a 4% drop in the Bloomberg Dollar Spot Index since April, could signal declining confidence in U.S. fiscal and trade policies and the overall safety of U.S. assets. Pressure from the U.S. for currency appreciation from East Asian trade partners, particularly Japan and China, could be met with resistance or lead to competitive devaluations, increasing FX market volatility. The depreciation of the dollar may be driven by concerns over the U.S. economy, the national deficit (highlighted by Moody's recent downgrade), and a lack of fiscal restraint, rather than a managed policy outcome. Uncertainty surrounding the sustainability of U.S. tariffs and the chaotic nature of their implementation has already negatively affected the dollar; further policy shifts could exacerbate this. If the U.S. pushes too aggressively for currency adjustments, it could strain relationships with key allies and trading partners, potentially complicating broader G-7 objectives and cooperation on other economic issues. A continued decline in the dollar could lead to imported inflation in the U.S. and may necessitate higher interest rates in the future to attract foreign capital, potentially slowing domestic economic growth. Citi analysts underscored that rather than pursuing a broad Plaza Accord-style intervention, Treasury Secretary Bessent is expected to emphasize the role of central banks and their investment strategies in influencing currency markets. This nuanced approach could result in continued downward pressure on the dollar as tariff barriers are progressively lowered. Since the introduction of tariffs in April, the Bloomberg Dollar Spot Index has already fallen about 4%, reflecting heightened uncertainty around U.S. fiscal and trade policies. Citi's outlook suggests these trends could persist, especially if U.S. trade strategy continues favoring tariff cuts accompanied by a softer dollar policy stance.
Reuters
16-05-2025
- Business
- Reuters
US equity funds draw first inflow in five weeks on tariff deal optimism
May 16 (Reuters) - U.S. equity funds attracted inflows for the first time in five weeks in the week through May 14 as optimism over progress in tariff negotiations and easing concerns about rising consumer prices lifted investor sentiment. According to LSEG Lipper data, investors bought a net $12.86 billion worth of U.S. equity funds, which marked their first weekly net purchase since April 9. Following the 90-day U.S.-China tariff truce reached on Monday, investors now anticipate that Washington will move toward agreements to roll back steep tariffs. Softer-than-expected U.S. consumer inflation data for April further eased concerns about tariff-driven price pressures. Large-cap U.S. equity funds attracted $5.06 billion in net inflows, partially reversing $13.6 billion in outflows recorded the previous week. Small-cap funds also saw net purchases of $1.05 billion, while mid-cap funds registered net redemptions of approximately $650 million. U.S. sector equity funds pulled in $2.77 billion, marking the strongest weekly inflow since January 29. The financial, industrial, and healthcare sectors led the charge, with inflows of $596 million, $559 million, and $475 million, respectively. U.S. bond funds posted a robust $10.14 billion in net inflows—the largest weekly total since July 17, 2024. General domestic taxable fixed income funds received $3.09 billion, their biggest weekly intake since February 5. Short-to-intermediate investment-grade and mortgage bond funds drew $1.76 billion and $1.43 billion, respectively, while short-to-intermediate government and Treasury funds saw net outflows of $2.15 billion. Meanwhile, U.S. money market funds experienced $9.43 billion in net outflows, following $28.8 billion in inflows the previous week.
