Tokyo’s envoy for US tariff talks in Washington said Thursday that the second round of negotiations between the two countries had been “frank and constructive.”Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminum.President Donald Trump also in early April announced “reciprocal” tariffs on Japan of 24 percent, but later put them on pause for 90 days along with those on other countries except China.”We were able to move forward in frank and constructive discussions to reach a mutually beneficial agreement as soon as possible,” Ryosei Akazawa told reporters Thursday.”We were able to advance concrete discussions on, for example, expanding trade between our two countries, non-tariff measures and economic and security co-operation.”Akazawa said he had “strongly proposed” to US Treasury Secretary Scott Bessent and other officials that Trump’s sweeping levies on trade partners be reviewed.The next round of ministerial-level talks will “take place intensively from mid-May onwards,” Akazawa said. Thursday’s talks followed an initial meeting in mid-April.Akazawa said any deal on tariff relief would be in the form of a package, which will be announced when finalized.”We have not yet reached the point where we can find areas of agreement,” Prime Minister Shigeru Ishiba told reporters.”However, I have been informed that the discussion was very positive and constructive.”- ‘Firmly defending’ interests – Trump has repeatedly called for a stronger yen to boost US exports, but foreign currency rates were not discussed Thursday, Akazawa said.The yen has risen significantly since Trump’s tariffs were announced, and was trading at 145 for a dollar, compared with 158 in mid-January.Japanese media had said the second round of talks could focus on automobiles and agricultural products, which Akazawa called “very important economic sectors.””We have no intention of negotiating in a way that would be detrimental to the national interest, so we have been firmly defending what needs to be defended and saying what needs to be said,” he said.Akazawa had told reporters at the airport on Wednesday that “Japanese companies are losing money each and every day” because of US tariffs. He said Thursday that he did not discuss China with the US officials, adding that Japan has a “very strong trade relationship with China too.””We will continue to monitor the developments in US-China relations, including the tariff measures against China, with great interest.”Separately, Finance Minister Katsunobu Kato said on a TV Tokyo program on Friday that Japan’s holdings of US Treasuries could be a bargaining chip in the negotiations.”It is natural to discuss everything that is a negotiation card… Whether we use them or not is another matter,” Kato said, according to TV Tokyo.”We don’t keep (the Treasury holdings) to support the US. We will intervene if our country is in trouble.”

With their sleek curves and chrome grilles, the classic American cars on sale at Yosuke Fukuda’s yard ooze Californian cool but on Japanese roads new US vehicles are a rare sight — much to President Donald Trump’s annoyance.Japan’s Toyota is the second-top-selling automaker in the United States, where it shifted more than 2.3 million vehicles last year.Meanwhile US industry leader General Motors sold just 587 Chevrolets and 449 Cadillacs in Japan, while Ford pulled out of the tough Japanese market nearly a decade ago.And it’s not just an aversion to foreign brands — in 2024 Mercedes-Benz sold more than 53,000 vehicles and BMW sold over 52,000 including Minis.”They don’t take our cars, but we take MILLIONS of theirs!” Trump said in April, accusing Japan of treating its ally “very poorly on trade”.To try and rev up the US auto industry, Trump has imposed a 25 percent levy on imported vehicles, in a major blow to Tokyo.Many people in Japan admire vintage US cars, but when it comes to new wheels, they hold more trust in domestic brands, Fukuda told AFP.West Coast hip-hop booms out at his shop Y-Tech, an incongruous slice of Americana amid the rice paddies north of Tokyo.”To be honest I think the problem is the size of the roads,” as well as an impression that US cars break down more often, which is likely unfounded, Fukuda said.At his garage, the 20 or so classic US models in varying states of restoration include a silver-green 1970 Chevrolet Nova and a 1954 Buick Roadmaster.But Fukuda also drives a modern SUV — a General Motors Yukon, which is two metres (6.5 feet) wide and “sticks out or is packed in” when parked in Tokyo’s narrow streets.Although some US cars are smaller, the brands remain a niche choice because “there are hardly any places that sell them or repair them”, he said.- ‘Bowling ball test’ -Yuka Fujimoto, a 42-year-old modelling agency manager, told AFP she had never considered buying a US car.”American cars don’t sell very well” in Japan, where domestic automakers offer “a wide range of line-ups including for families”, she said.However Trump believes Japan is keeping out American cars with “non-tariff cheating”.This includes “Protective Technical Standards (Japan’s bowling ball test)” he wrote last month on Truth Social.”They take a bowling ball from 20 feet up in the air and they drop it on the hood of the car. And if the hood dents, then the car doesn’t qualify,” Trump reportedly elaborated in 2018.A Japanese transport ministry official in charge of safety standards told AFP that no actual bowling balls are used.Trump “may be mixing it up with a test where a hemispherical human head model is hit on the hood”, the official said.But the car’s bonnet is in fact required to dent to absorb the impact, he explained.Tweaking Japan’s vehicle import procedures is a potential bargaining chip for Tokyo in tariff talks with Washington.The country could offer to widen access to a simplified screening process which currently applies to 5,000 vehicles per model annually, Japanese media reports said.- Fuel efficiency -Trump’s auto tariffs have already brought some changes, with Nissan last month revising plans to reduce US production.Meanwhile Honda is moving production of its hybrid Civic model from Japan to the United States, saying no “single issue” had prompted the decision.But US carmakers still face the problem of tepid demand among Japanese consumers.Hisashi Uchida, a 56-year-old construction firm employee, said his Toyota car “doesn’t have any special features, but it doesn’t break down”.”Many American cars can’t be parked at multi-storey parking lots, and their fuel efficiency isn’t good,” he said.Overall “I don’t think US carmakers are really putting importance on the Japanese market, which is significantly smaller than their home market”, said Masamitsu Misawa, chief editor of Japanese vehicle magazine Car Top.In contrast, German car brands offer a better range and their designs “better match Japanese people’s tastes”, he told AFP.Cars in Japan drive on the left, and unlike US rivals European automakers usually put the steering wheel on the correct side for vehicles sold there, he added.That could be changing. General Motors’ 8th-generation Chevrolet Corvette has right-hand drive in Japan for the first time.”I think that reflects efforts (for selling in Japan) by manufacturers and importers,” Misawa said.

Asian markets largely rose Friday, tracking Wall Street gains, as China said it was considering a US offer to negotiate steep tariffs.US markets forged higher Thursday following strong results from tech giants Microsoft and Meta that helped offset lingering economic worries.Apple reported first-quarter profit above expectations but warned that US tariffs could cost the company and were disrupting its supply chain.And Amazon reported a nine percent rise in first-quarter revenue, but its outlook fell as potential impact from the US-China trade war rattled investors.Washington’s punishing levies reached 145 percent on many Chinese products in April, while Beijing has responded with fresh 125 percent duties on imports from the United States.On Friday, China’s commerce ministry said it was evaluating a US offer for negotiations on tariffs, but wanted Washington to show “sincerity” and be ready to scrap levies that have roiled global markets and supply chains.US President Donald Trump has repeatedly claimed that China has reached out for talks on the tariffs, and this week said he believed there was a “very good chance we’re going to make a deal”.Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.Stephen Innes of SPI Asset Management said Beijing and Washington were now “waving detente flags” in their spiralling trade war.Beijing’s demand for sincerity was an apparent call to ditch the 145 percent rate, before holding serious talks, Innes said in a note Friday.”But dig a layer deeper, and the path is still littered with landmines,” he added.In Asia trading Friday, Hong Kong’s Hang Seng Index was up more than one percent in the morning, while Japan’s main Nikkei index gained about 0.6 percent.Japan’s envoy for US tariff talks said in Washington on Thursday that a second round of negotiations between the two countries had been “frank and constructive”.Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.The Bank of Japan warned earlier that tariffs were fuelling global economic uncertainty and revised down its growth forecasts while keeping its key interest rate steady.Traders are looking ahead Friday to US jobs data for April for indications of the US central bank’s path for interest rates.- Key figures at around 0220 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 36,677.95Hong Kong – Hang Seng Index: UP 1.2 percent at 22,386.08Shanghai – Composite: closed for holidayEuro/dollar: UP at $1.1297 from $1.1289 on ThursdayPound/dollar: UP at $1.3295 from $1.3277Dollar/yen: DOWN at 145.43 yen from 145.44 yenEuro/pound: DOWN at 84.98 pence from 85.02 penceWest Texas Intermediate: UP 0.9 percent at $59.75 per barrelBrent North Sea Crude: UP 0.8 percent at $62.62 per barrelNew York – Dow: UP 0.2 percent at 40,752.96 (close)London – FTSE 100: FLAT at 8,496.80 (close)burs-sco/rsc