Treasury Secretary Scott Bessent said Monday that President Donald Trump has directed him to negotiate a new trade arrangement with Japan as tariffs roil the global economy.
Bessent said Trump had tasked him and United States Trade Representative Jamieson Greer to open negotiations on trade. Earlier on Monday, Trump spoke with Japanese Prime Minister Shigeru Ishiba about U.S. plans to levy tariffs against Tokyo.
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“Following a very constructive phone discussion with the Government of Japan, [Trump] has tasked me and [Greer] to open negotiations to implement the President’s vision for the new Golden Age of Global Trade with [Japanese Prime Minister] Shigeru Ishiba and his Cabinet,” Bessent said on X.
News of the negotiations comes after Trump announced 24% “discounted reciprocal tariffs” on Japan that are scheduled to go into effect on Wednesday.
On social media, Trump accused Japan of treating the U.S. unfairly in trade following his call with the prime minister, but he noted Japan’s willingness to negotiate. The missive comes as both Washington and Beijing have threatened to ratchet up a trade war between the two countries.
“Countries from all over the World are talking to us,” Trump said. “Tough but fair parameters are being set. Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate! They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs. Likewise Agriculture, and many other ‘things.’ It all has to change, but especially with CHINA!!!”
Trump’s announcement last week of 10% tariffs on all imports and, in some cases, higher tariffs on certain countries has sent shockwaves through the global economy, roiling not only the stock market in the U.S. but also causing market pain in other countries.
The stock market on Monday has been all over the place, with the Dow Jones Industrial Average opening down some 1,200 points. The market seemed to get a bounce from the Japan news, but was then trading some 400 points lower as closing bell neared.
Japan’s prime minister told reporters after his call with Trump that he pointed out to his counterpart how much Japan invests in the U.S.
“I’ve told the president that Japan has been the biggest investor in the United States for five straight years and the tariff policies could hurt Japanese companies’ investment capabilities,” Ishiba told reporters, according to Reuters.
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The U.S. inked a trade deal with Japan in 2019, which reduced tariffs on some $7.2 billion in U.S. agricultural exports. A digital trade agreement also included provisions to ensure data can be transferred across borders without restrictions and guaranteed consumer privacy protections, among other things.
The Japanese stock market has also declined as a result of the Trump tariff announcement. The Nikkei 225 index plunged more than 7.8% on Monday and has dropped some 13.4% in the past five days alone.