FX.co ★ Japan Eyes June Trade Deal with U.S. as Talks Intensify

Japan is striving to conclude a trade agreement with the United States by June, with negotiations anticipated to intensify by mid-May, as stated by Japan’s chief negotiator, Ryosei Akazawa, following the recent discussions in Washington. This meeting included prominent U.S. figures such as Treasury Secretary Bessent and Trade Representative Jamieson Greer. It was characterized as "frank and open," despite numerous unresolved issues. Akazawa affirmed Japan's stance that President Trump’s tariff initiatives are "extremely regrettable" and urged a reassessment of these measures. Meanwhile, Finance Minister Katsunobu Kato suggested that Japan’s substantial U.S. Treasury holdings could potentially be used as leverage, noting, “It does exist as a card,” although it remains uncertain if it will be employed. This position represents a shift from an earlier one held by officials from the ruling party. Akazawa mentioned that topics such as foreign reserves, foreign exchange policy, national security, and China were not brought up in the discussions. It is anticipated that an agreement might be finalized at the G7 summit in June, prior to the expiration of the tariff pause in July.