Negotiations between the United States and Japan in Washington, D.C., concluded without an agreement, despite initial signals from the White House indicating a trade deal with Japan was imminent. The discussions highlighted Japan’s concerns and hesitance to make concessions ahead of domestic elections. Mixed messages from U.S. officials and resistance from international partners such as China suggest that bilateral trade talks will be prolonged, casting uncertainty on President Trump’s objective of achieving “90 deals in 90 days.”
In the weeks leading up to a visit from Japan’s chief trade negotiator, the White House implied that a deal was close at hand. Speculation was high that the visiting Japanese representative could secure favorable terms for being the first to reach an agreement with the Trump administration, a concept highlighted by Treasury Secretary Scott Bessent. However, Ryosei Akazawa, Japan’s economic revitalization minister, returned to Japan without an agreement, reportedly urging the U.S. to reconsider its “extremely regrettable” actions. Japan’s prime minister also expressed “grave concerns” over some of the U.S. policies.
Further talks between Bessent and Japanese Finance Minister Katsunobu Kato are anticipated in Washington, D.C., concerning the yen’s valuation. Sources indicated that Japan’s proposal might be declined.
The stance from Tokyo contrasts with the optimistic narrative from the White House. President Trump and Commerce Secretary Howard Lutnick conveyed significant progress in negotiations, suggesting robust U.S. control over tariff discussions and ongoing meetings with more than 75 countries.
The conflicting reports are prompting analysts to question the feasibility of Trump’s “90 deals in 90 days” target. Investor confidence in the U.S. dollar has declined due to these fears, according to Macquarie strategists Thierry Wizman and Gareth Berry. The analysts noted that Japan was seen as an early test case for a deal, yet negotiations ended without a clear agreement. Key issues possibly hindering progress include U.S. demands on Japan’s agricultural markets, yen revaluation, military spending, and the purchase of U.S. LNG.
Globally, various pressures are affecting responses to the U.S. administration’s trade strategies. China has issued warnings that any nations counteracting its interests would face repercussions, having already faced significant U.S. tariff hikes. A Chinese Commerce Ministry spokesperson announced that China would take resolute countermeasures against such actions.
The Macquarie analysts pointed out that internal political pressures, such as Japan’s impending upper house elections, might be influencing Japan’s negotiators to avoid appeasing the U.S. too readily. The likelihood of extended bilateral negotiations could prolong uncertainty regarding both countries’ willingness to make concessions.
Berry and Wizman speculate that markets may need to prepare for a prolonged negotiation period. They suggest that U.S. trading partners may anticipate easier concessions as a potential U.S. economic slowdown intensifies, indicating a lengthy and complex negotiation process.
This story was originally featured on Fortune.com.
