Overview

• Japanese Prime Minister Shigeru Ishiba stated Japan will not make significant concessions or expedite a deal in response to US tariffs, emphasizing a measured approach to negotiations.
• Formal trade talks between Japan and the US are scheduled to begin on April 17, focusing on tariffs, non-tariff barriers, and exchange rate policies.
• US tariffs, including a 25% duty on automobiles, continue to strain Japan's export-driven economy, with automobiles accounting for 28% of Japanese exports to the US.
• Currency discussions, particularly concerning the weak yen, are expected to feature prominently, with potential implications for Japan’s monetary policy and interest rate decisions.
• Japan's substantial holdings of US Treasuries may serve as a strategic leverage point as it navigates economic pressures and seeks to protect its trade interests.