No easy deals

While Trump may have hailed “big progress” in talks with Japan yesterday, the tone struck by Ryosei Akazawa wasn’t as optimistic. Japan’s economy minister is the one tasked to lead trade talks and the most he said was that “for our part, we want to do it (make a deal) as soon as possible”. But perhaps the more important detail is this comment:

“We will work to schedule the next consultation to be held within this month. And then, we will continue to hold discussions at the working level in addition to the ministerial level.”

There weren’t much details as to what was discussed, besides the fact that it seemed to not include foreign exchange policy at least.

But the above remark on what’s going to happen next is not very encouraging I would say. Yes, there’s a clear step-by-step process laid out. However, where’s the sense of urgency?

They’ll be speaking again later this month and then after, there will need to be further discussions at the working and ministerial levels. That could drag on for weeks on end. And mind you, this was supposed to be one of the easiest battles to resolve in the tariffs war.

I reckon they might get moving quicker when we move closer to the deadline on the 90-day tariffs pause. But for now, it pretty much sets the tone for everyone else. There are no easy deals.

This article was written by Justin Low at www.forexlive.com.