This week, significant trade negotiations took place between the US, Japan, and South Korea. According to US Treasury Secretary Scott Bessent, the discussions were productive and opened new avenues for cooperation.
Trade Talks with Japan
After meeting with Japanese Finance Minister Katsunobu Kato in Washington, Bessent said he 'welcomed the strong start' between the two countries as they opened new bilateral trade talks. The discussions focused on finding ways to boost trade between the allies without new restrictions getting in the way.
Meeting with South Korea
On Thursday, Bessent also met with South Korean Finance Minister Choi Sang-mok, South Korean Trade Minister Ahn Duk-geun, and US Trade Representative Jamieson Greer. The Treasury reported that the group agreed to 'further productive discussions, including on currency policy,' emphasizing that both sides want to push trade forward instead of erecting barriers.
Discussion on Currency and Tariff Issues
The talks made it clear that currency policy will remain a hot topic. Although Japan avoided direct US pressure to boost the yen for now, discussions on exchange rates and the Bank of Japan's interest rate moves are poised to be major issues in future negotiations. Kato noted that Japan and the US would 'continue close and constructive dialogue on exchange rates' as part of ongoing bilateral trade talks.
Current negotiations between the US, Japan, and South Korea have opened new opportunities for trade. However, the road ahead seems challenging as the Trump administration remains focused on reducing the trade deficit.
