Japan provides priority tariff negotiations with Donald Trump

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Japan emerged on Tuesday as the first major economy in securing priority tariff negotiations with Donald Trump, as it highlighted its position as the largest creditor and investor in Washington and leads to an increase of 7 percent in the stocks listed in Tokyo.

The stock market bounces, which was almost completely reflected Wide collapse on Monday From Japanese stocks, a 25 -minute conversation followed between the American President and Japanese Prime Minister Shigro Ishiba, as the leaders agreed to open the negotiations.

After the invitation, Trump posted his social platform Japan I dealt with the United States “very bad” to trade. “They do not take our cars, but we take millions of them. Cultivation is similarly, and many other” things “. All this must change, but especially with China !!!”

Ishiba, Minister of Economic Activation, appointed Riozi Akazawa as the chief negotiator in Japan in the talks, which Tokyo officials expect to start “very soon”, reflecting the country’s need to protect the auto industry, which has been built a large percentage of the economy.

The United States Team will lead the Treasury Secretary Scott Pesin, along with the American commercial actor Jameson Jarir. “It is expected that Japan will get a priority because it has advanced very quickly,” said Pesin in Fox News on Monday.

Akazawa told reporters on Tuesday that Pesin as head of the American delegation suggested that the White House “has a strong interest in the areas he supervises.”

These notes raised expectations between investors as in addition to the definitions, negotiations will also focus on the dollar exchange rate, which has emerged as a source of competition for the Trump administration.

“The bank of Japan is very independent, but with Japan searching for a way to alleviate these sharp definitions, there will be pressure from the central government to accelerate the high interest rates and send the yen up.”

Japan, which considers itself the closest ally of Washington in Asia, was amazed last week by declaring Trump a 24 percent tariff for its imports, in addition to 25 percent is a tax on vehicles. Ishiba described the measures as a “national crisis” for Japan.

Analysts have warned that the burden of customs tariffs will be catastrophic on Japan, which-despite the long-term investment in manufacturing in the United States-benefits greatly from exports and depends on a relatively low trade.

On Monday, Ishiba Trump reminded his country as the largest foreign investor in the United States, and warned that the flow of companies was at risk of threatened fees.

Takishi Yamaguchi, Japanese economist at the Morgan Stanley MUFG Securities, said that the American -Chinese tensions can serve as the back wind of Japanese negotiations.

“Japan will need to suggest a package to reduce the deficit, given that the American administration is viewing it as a problem.” He suggested capabilities such as increasing imports for American agricultural products, defense and energy equipment, as well as commitment to coordination with the United States in the event of a decrease in the yen.

In another indication of openness in the United States, Trump on Monday ordered a new review of the national security to acquire the US steel, which is based in Pennsylvania. The review, which will be led by the Treasury, will provide a recommendation for Trump within 45 days.

Joe Biden prevented the acquisition in January in one of his final work in his position. Trump had also indicated an opposition to full acquisition.

But the CEO of Nippon steel They were negotiating With US Minister of Commerce Howard Lottenick on the framework and conditions of the deal in which the Japanese group will take the majority of the American steel maker, according to two people who are aware of this issue.

Nippon Steel shares rose up to 10.5 percent in the morning on Tuesday before the afternoon gains dug to the entrances of 6.3 percent.

In a statement, the company said it “is looking forward to a timely solution so that we can start making our planned investments that will put the United States to be a pioneering global product.”