Sri Lanka
USA
Canada
India
UK
UAE
As US President Donald Trump celebrates apparent advancements in trade negotiations with Japan, concerns over ongoing tariffs continue to shake investor confidence and pull Wall Street lower.
United States President Donald Trump has announced “big progress” in trade negotiations with Japan, following a surprise personal appearance during a high-level meeting in Washington, DC. The move comes amid ongoing market volatility triggered by his sweeping tariff policies.
Trump joined the negotiations alongside key US officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, meeting with Japanese Economic Revitalization Minister Ryosei Akazawa. Afterward, Trump posted on Truth Social: “A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!”
Minister Akazawa confirmed that Trump is eager to secure a deal before the end of his 90-day pause on the controversial “reciprocal” tariffs. Japan hopes to reach an agreement as quickly as possible, although both sides acknowledge the talks are far from simple.
Japanese Prime Minister Shigeru Ishiba stated that while the negotiations are complex, early discussions have laid a “foundation for the next steps.”
Japan, the United States’ fourth-largest trading partner and a vital security ally, has been significantly impacted by Trump’s tariffs. In addition to a 10% baseline tariff, Japan faces duties of 25% on core exports such as cars, steel, and aluminium. A 24% “reciprocal” tariff—part of Trump’s “liberation day” measures—is also looming, though currently paused until July 9.
Economists have voiced concern. Martin Schulz, chief policy economist at Fujitsu in Tokyo, told Al Jazeera: “Japan’s industry is so closely integrated into the US economy that everyone is very concerned about the trade talks.” Still, Schulz remains hopeful: “There cannot be winners in a trade war, but we are optimistic agreeable results can be achieved.”
Meanwhile, Wall Street continues to suffer under the weight of economic uncertainty. On Wednesday, the S&P 500 dropped 2.24%, while the Nasdaq Composite tumbled 3.07%. The losses followed remarks from Federal Reserve Chair Jerome Powell, who warned that continued tariffs could force the US economy into a damaging scenario of low growth, rising inflation, and job losses.
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell said, highlighting the difficulty of maintaining both full employment and stable prices under current conditions.
Since Trump’s inauguration, financial markets have endured a turbulent ride, with fluctuations driven by shifting trade strategies and tariff threats. Business leaders and global investors continue to watch closely for signs that Trump might soften his approach in exchange for favorable deals.
According to the Trump administration, more than 75 countries have already initiated trade talks with the US.
Despite Wall Street’s recent slump—with the S&P 500 and Nasdaq down 10% and 15% respectively this year—Asian markets opened higher on Thursday. The Nikkei 225, KOSPI, and Hang Seng Index all climbed by more than 0.5% in early trading, offering a temporary reprieve from global market jitters.
#TrumpJapanTrade #USJapanRelations #TradeWar #WallStreetUpdate #GlobalMarkets #TariffTalks #EconomyNews #StockMarketDip
