Trump and Japan discuss tariffs and military support costs

US President Donald Trump expressed his satisfaction following a meeting with Japan’s trade envoy at the White House on Wednesday, noting progress in the discussions. However, the Japanese side requested that the President reconsider tariffs, stating that they would negatively impact Japanese companies’ efforts to invest in the US.

Trump posted on the Truth Social platform after trade talks with Minister of State for Economic and Fiscal Policy, Ryosei Akazawa: “Just met with the Japanese Delegation on Trade. Great Progress!”

Akazawa later told reporters that after a 50-minute meeting with Trump in the Oval Office, he attended a 75-minute meeting at the White House with US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer.

Akazawa said that Trump made it clear that discussions with Japan were a high priority for America and that he hoped the talks would progress well at the ministerial level.

Akazawa noted that during the cabinet-level discussions, he conveyed his regret regarding all newly implemented tariffs, including “reciprocal” tariffs, sector-specific tariffs on automobiles, steel, and aluminum, as well as across-the-board 10% tariffs. He added that he strongly urged the US to reconsider the measures.

The two sides agreed to hold another round of talks this month, aiming to reach an agreement that could be signed by Trump and Japanese Prime Minister Shigeru Ishiba as soon as possible.

Akazawa declined to provide details about Wednesday’s discussions but clarified that currencies were not discussed.

A Japanese Foreign Ministry official told reporters that the parties would take away what they learned, analyze each other’s positions, and meet again within the month. It has not yet been decided whether the second meeting will be in person or virtual.

Earlier in the day, Trump signaled that discussions on lowering reciprocal tariffs imposed on Japan, currently set at 24%, would depend on Tokyo’s willingness to further share the burden of maintaining US military bases in the country.

“Japan is coming in today to talk Tariffs, the Cost of Military Support, & ‘TRADE JUSTICE.’ I will be meeting, along with the Secretary of the Treasury & Commerce. Hopefully, something that will be good (GREAT!) for both Japan and the US can be worked out!” he wrote on Truth Social.

In the trade negotiations, Japan was represented by Akazawa, a close ally of Ishiba. He was accompanied by senior officials from the finance, economy, trade and industry, and foreign affairs ministries.

Trump’s press secretary, Karoline Leavitt, told reporters on Friday that Trump had made it clear he would be “deeply involved” in the discussions with his trade team.

“He wants to sign all of these deals himself,” Leavitt said.

Prime Minister Shigeru Ishiba, who told reporters in Tokyo that there was still a “gulf” between Japan and the US, said Akazawa’s meeting was constructive. “The negotiations will not be easy,” the Prime Minister said, adding, “but President Trump said he would give priority to Japan. I think it was a meeting that will lead to the next steps.”

Akazawa, a former transportation bureaucrat, faces a long task. Japan wants the 24% “reciprocal” tariff to be lowered and to be exempted from the 25% tariff imposed on foreign automobiles. However, the Trump administration has signaled that the automobile tariffs are “Section 232” tariffs based on national security concerns and are not negotiable.

Possible concessions from the Japanese side include a guarantee to purchase liquefied natural gas from Alaska on a long-term basis, more rice imports, and a commitment to buy more American cars.

One of the most contentious issues would be a demand from the US side for action on the currency front—for example, measures that would lead to a higher yen and a lower dollar.

Concessions on agriculture would be a sensitive issue ahead of upper house elections in Japan this summer, where the ruling Liberal Democratic Party cannot afford to lose agricultural votes.

Last week, Trump said at a cabinet meeting that he did not believe the security alliance with Japan was fair.

“We defend them, but they don’t have to defend us. That doesn’t sound too good,” Trump told reporters.

He expressed frustration that Japan does not pay for the protection it receives: “We spend hundreds of billions of dollars defending them… We pay for the whole thing, and they don’t pay anything. But if we are attacked, they don’t have to do anything to help us.”

According to the Congressional Research Service, Japan pays about $2 billion per year to offset the cost of stationing US military personnel in Japan. In addition, Japan pays compensation to local governments that host US troops, rent for bases, and costs for new facilities.

It is unclear what role China will play in the discussions.

According to Tuesday’s Wall Street Journal, Bessent is asking trade partners to limit China’s interference in their economies in exchange for concessions on reciprocal tariffs. The plan, according to the newspaper, is to isolate China.

According to the newspaper, these measures include not allowing China to ship goods through their countries, preventing Chinese companies from locating in their territories to avoid US tariffs, and not incorporating cheap Chinese manufactured goods into their economies.

Cutting China off from the US economy with tariffs, and even potentially delisting Chinese stocks from US exchanges, are also being considered, according to the report.

Meanwhile, Ishiba has implied that he wants to work with other countries to deal with Trump’s tariffs, rather than just making an arrangement for Japan alone.

Ishiba told a parliamentary committee on Monday that he wanted to work with US allies such as Southeast Asian countries and Britain, which are currently facing tariff threats.

As of now, Trump’s reciprocal tariffs are under a 90-day pause to allow room for trade negotiations. A 10% across-the-board tariff and a 25% tariff on exports to the US of automobiles, auto parts, steel, and aluminum remain in effect.