U.S.-Japan Tariff Talks: A Test of Diplomatic Will

Japan and the U.S. are engaging in tariff negotiations to address longstanding trade issues, including high duties on Japanese exports and military cost contributions. President Trump plans to attend the talks, underscoring their significance amidst Japan's cautious approach to avoid making large concessions.

In a critical move to address longstanding trade disparities, Japan is set to commence tariff negotiations with the United States in Washington. These talks represent one of the initial tests of President Donald Trump's approach to international trade policies, which have included sweeping import duties that have unsettled markets.

President Trump announced that he would personally participate in the discussions, which aim to tackle tariffs and other contentious issues like military support costs and 'trade fairness'. Key figures in the talks include Trump's Treasury Secretary Scott Bessent and Japan's top trade negotiator, Ryosei Akazawa.

Amidst a backdrop of paused 24% levies on its exports, Japan is negotiating under considerable pressure, with a remaining 10% universal rate and a hefty 25% duty on cars. The discussions could also encompass energy projects and exchange rates, as Japan seeks a resolution without major concessions.

(With inputs from agencies.)