Japan in no rush to compromise days ahead of US tariff talks #JapanFinance

(Bloomberg) — Japan’s prime minister said he won’t rush to compromise in high-stakes trade negotiations with the US this week, which may set the tone for nations around the world that are seeking a reprieve from President Donald Trump’s tariff campaign.Most Read from Bloomberg

Economic Revitalization Minister Ryosei Akazawa is expected to make his first visit to the US as chief trade negotiator this week, Prime Minister Shigeru Ishiba said in parliament on Monday. Local media reported that the trip will take place April 16-18. That makes Japan one of the first nations in the world to start talks with the US after Trump’s abrupt decision to put a hold on the latest round of levies for three months.

“We may fail if we rush, and I don’t think it’s good to compromise a lot in order to just get the negotiations done,” Ishiba said, adding that the talks should involve national security matters as well. “It’s important for Japan and the US to build a new relationship that is unique to allies.”

While Japan has been given a 90-day reprieve on the 24% across-the-board levies, the baseline 10% tariff is still in place, as is a 25% tariff on cars, steel and aluminum. Japan has repeatedly sought exemptions from the measures, largely to no avail, but there are signs the country may be able to secure preferential treatment — not least because of how quickly Akazawa is meeting US side trade negotiator Scott Bessent.

Earlier remarks from the two sides suggest that negotiations will include cars, agricultural products, non-tariff barriers and foreign exchange. Ishiba’s comments Monday suggested that Japanese officials are aware of the risks of being pushed into an unfavorable trade deal as Trump seeks results from his tariff campaign.

Ishiba reiterated that it was “extremely unfair” to subject Japan to the same tariffs as other countries, given that it is the largest foreign investor in the US, and has created many jobs. He added it would be important to understand the emotions that had led Trump to adopt the policy.

Ishiba said he didn’t currently think retaliating with tariffs against the US would be beneficial, given Japan’s low degree of self-sufficiency in terms of food and energy.

Akazawa said Monday that Japan’s Finance Minister Katsunobu Kato and Bessent will discuss foreign exchange matters, suggesting that he may try and avoid the topic if possible. Still, last week Akazawa also said he will discuss the matter if Bessent brings it up.