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President Trump has announced that trade talks with Japan, Mexico, and the European Union are making “progress,” as Chinese President Xi Jinping continues to tout China as a “reliable trading partner” to world leaders.
Some shit you should know before you read: If you’re unaware, a few weeks ago the US announced a pause on proposed tariffs, granting a 90-day suspension for most countries—except China—as part of President Trump’s effort to kickstart a wave of bilateral trade negotiations. Trump said the temporary easing was in response to market instability and to give countries “a fair chance” to strike better, more “reciprocal” trade deals with the US, claiming that phones at the White House were “ringing off the hook” with nations eager to make deals. In response, China has intensified its own diplomatic efforts, with President Xi Jinping visiting Vietnam, Malaysia, and Cambodia in the last week. During these visits, Xi promoted China as a “reliable” trading partner and criticized the US for “weaponizing” global trade systems.
What’s going on now: While speaking to reporters, President Trump described ongoing talks with Japan as good, noting that the US was “making progress.” He said it was a “great honor to have just met with the Japanese Delegation on Trade. Big Progress. We’re going to make a trade deal. I think we’re going to make a very good deal with Japan.” Trump noted that the US was no longer accepting one-sided trade agreements with Japan and the world.
Japan’s Prime Minister Shigeru Ishiba responded with a different tone, acknowledging the talks were productive but warning they would be difficult. “Of course, the negotiations will not be easy going forward, but President Trump has stated that he wants to give top priority to the talks with Japan,” Ishiba said. After receiving reports from his delegation, he added, “I believe that the discussions will lead to further progress,” while stressing that Japan would not be offering “big concessions” just to expedite a deal.
These remarks came amid threats of a 24% tariff on Japanese imports, which would significantly impact Japanese automobiles and industrial goods. Trade between the US and Japan is a vital economic relationship, valued at approximately $231 billion in 2022, according to the Office of the US Trade Representative. Japan’s exports to the US have led to a $63 billion trade surplus with the US, a figure Trump has repeatedly cited in his calls for more balanced trade terms.
This all comes as President Trump continues to tout progress in trade talks with multiple countries beyond Japan, including Mexico, Italy, and members of the European Union. During a recent White House meeting with Italian Prime Minister Giorgia Meloni, Trump said, “I’m sure we can make a deal,” expressing optimism about reaching an agreement with the EU before the current 90-day tariff pause expires in July. He also claimed he had a “very productive call” with the president of Mexico and hinted that other nations are eager to engage.
