When Tokyo's top trade negotiator met U.S. President Donald Trump for tariff talks at the White House earlier this month, he presented him with a gold-colored piggy bank.
One detail, seemingly unnoticed by those in the room, is that the gift was made in China, the focal point for Trump's sweeping trade war that has engulfed Japan and dozens of other countries, roiled financial markets and stoked recession fears.
As Trump seeks to leverage his tariff threats to strike scores of bilateral deals in a matter of months, the well-travelled present was an unintended reminder of the complexity of the global supply chains he is seeking to redraw.
Negotiating a speedy deal with Japan, a close U.S. ally that counts rival China as its biggest trading partner, has been billed as a "test case" for Trump's chances of success.
There are already signs, however, that negotiations with Tokyo may prove tortuous, especially as its embattled ruling party worries about signing up to a bad deal ahead of a dicey election.
"Trump needs to get some concessions from Japan so that he can show he is a 'tough president'," said Daisuke Kawai, an economic security specialist at The University of Tokyo. "He needs to create a kind of example as soon as possible."
While some analysts expect Japanese Prime Minister Shigeru Ishiba and Trump to announce an agreement when they meet at the G7 summit in Canada in June, others say it will be risky for the Japanese government to cede ground on thornier issues before upper house elections expected in July.
Polls show the ruling coalition is poised to lose its majority in that ballot, a result that could force Ishiba's ouster after he suffered the same fate in elections for the more-powerful lower house last year.
Trump has hit Japan with 24% tariffs on its exports to the U.S., although, like most of his levies, they have been paused until early July to allow room for negotiations. A 10% universal rate remains in place, as does a 25% duty on cars, a mainstay of Japan's export-heavy economy.
Japan's trade negotiator Ryosei Akazawa is set to depart for Washington for a second round of negotiations this week.
A spokesperson for the U.S. trade representative declined to comment on negotiations. The White House and Japan's foreign ministry did not immediately respond to a request for comment.
Asked about the gift to Trump - modeled on the otherworldly mascot Japan chose for the World Expo it is hosting in the city of Osaka - Akazawa said it had no meaning other than to encourage Trump to visit the event. He declined to comment on the item's origins, adding only that "Trump loves gold".
The item is listed on the expo's website as being "Made in China" and Reuters confirmed this with the producer, Osaka-based Heso Production.
THE PRICE OF RICE?
While Tokyo is still sizing up what Washington will prioritize in the negotiations, it anticipates demands to lower barriers to U.S. agricultural and automotive imports, a government official close to Ishiba said.
One of Trump's big gripes, Tokyo's tariffs on foreign rice, should be relatively easy to adjust as Japan faces a shortage of the staple and has seen prices rocket in recent months.
However, bureaucrats hoping to score a bargaining chip in the negotiations are facing resistance from influential ruling party lawmakers wary of alienating voters in their farming constituencies ahead of the elections, the officials said.
Trump's seeming unwillingness to offer exceptions for the 25% tariffs he has slapped on global auto imports, which make up nearly a third of all Japan's exports to the U.S., its biggest market, has also made Tokyo hesitant to offer concessions in other areas like rice, the officials said.
A group of lawmakers from Japan's ruling Liberal Democratic Party issued a statement on Friday saying they would not accept any negotiation strategy that "sacrifices" agricultural products to gain exemptions on auto tariffs or protect other industries.
On the plus side, Japan's initial concern that Trump may try to insert negotiations on foreign exchange rates into the talks has faded, while the U.S. President told reporters on Thursday that military matters were also likely to be treated separately.
Trump had previously indicated he wanted to discuss Japan and South Korea's payments towards the cost of hosting U.S. troops in the trade discussions.
Yet the anxious mood in Tokyo stands somewhat in contrast to the optimism Trump struck after his initial meeting with Akazawa, which he hailed as "big progress."
The U.S. and Japan are working to reach an interim agreement, but many of the biggest issues are being put off, Reuters reported earlier this week.
While Trump will face bigger battles ahead, especially as he hunkers down in a trade war with the world's No.2 economy China, getting a quick win in Japan is far from certain, analysts say.
"A 'quick' deal means excessive compromise by one of the parties," said Joseph Kraft, a financial and political analyst at Rorschach Advisory in Tokyo.
"I think Japan's strategy is to wait for the U.S. to show their hand ... They are likely to prioritize content over time. I speculate Trump will prioritize time over content."
© Thomson Reuters 2025.
54 Comments
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change
This is so stupid on all fronts;
First extorting an ally is meaningless.
2nd, japan should borrow one tenth the spine of china or at least learn from Europe.
Yet we have Japanese so called negotiators hurrying to kis his ass.
I'veSeenFootage
Didn't Trump say he was "very close to a deal" like two days ago? Don't tell me he was lying again?! I'm shocked!
JeffLee
A "speedy trade deal." This should be interesting. With such deals, the devil is so ofteni in the details.
deanzaZZR
Meanwhile ...
All Japan's exports to the USA get a minimum 10% tariff hit.
Steel and aluminum exports to the USA get a 25% tariff hit.
Automobile exports to the USA get a 25% tariff hit.
All this from Japan's "best friend".
HappySmiles
The photo of Japan's Economic Revitalization Minister Ryosei Akazawa and his delegation placating Trump in the Oval Office is eerily similar to the photos we often see of Kim Jong Un with his generals.
change
This photo should not be forgotten especially after power changes hands.
We should know the corraborators and their actions
kurisupisu
It’s not so much Japan’s exports that Japan is worried about.
Japan is worried about Japanese companies producing goods in China which are then exported to the U.S.!
Peter Neil
Welcome to today’s show of the Trump channel. All Trump, all the time.
Peter Neil
It’s not that hard to get a tariff exemption from Trump..
Prior to Trump taking office, all tariff exemptions were public record to describe the specific reason for the exemption. Trump made those filings secret.
One was was to contribute to his inauguration fund, another is to buy his meme coin stock and another to contribute to his PAC and Republican candidates. Many companies have done it. That way.
Just get the local US guy to buy his meme coin and get lobbyists to contribute to Republicans. Problem solved.
Or invest money with his son-in-law, who’s never run an investment fund. The Saudis did it and can get anything they want from Trump. It’s never returned a penny, but thats not the point. Consider it a gift.
Remember, his family looted their charity for kids with cancer for themselves, Trump golf courses and their businesses, so their standards are pretty low.
Mickelicious
Where are the MAGA hats made?
deanzaZZR
At the factory next to where the gold piggy bank is made.
NukiDota
How absolutely demeaning. He needs a raise!
Matt
Stupid man, putting a MAGA cap on! No one in Japan wants to make America great. What a terrible representative for us!
Yrral
Grinning like a obedient child,this like a sheep negotiation dinner with a lion
Tokyo Guy
The fact that California recently overtook Japan as the fourth largest economy is a nice little coincidence, like a subtle message to Japan: "stop bowing and scraping to the orange plague, he will take you for everything he can".
CS
Where are the MAGA hats made?
Soon they will be made Japan.
HopeSpringsEternal
Of course these are tough negotiations, but Trump's busy trying to also convince Japan to copy his policies of reshoring supply chains and manufacturing and in doing so reduce dangerous over-reliance on China.
Above approach by all US trading partners will make the world economy far more resilient, diversified and act to make all markets more competitive, thus driving down prices and inflation, while improving economic growth.
Trump = Make Global Economy Great Again!
elephant200
Donald Trump NEVER honouring any deals he agreed, he has many excuses and extortion methods to turn the table and demanding to start again from zero !
elephant200
Soon they will be made Japan.
How many young people in Japan including foreign workers?
Yrral
China only sell 450 billion dollars of good a year, American spend 50 billion dollars a day economic,that is 9 day cycle
elephant200
What a terrible representative for us!
The LDP never representing ordinary people but the puppets of America and Japan is a vassal state. The whole world is watching how Japan is losing the final grasp of their own country!
JMAGA: Japanese made America great again. Very profound but just in fiction!
Bob Fosse
Both sides opening trade negotiations by exchanging gifts made in China. You couldn’t make this up.
Yrral
The US has no financial circuit breaker in their market,you think when uncertainty about Tariff and you have banks on problem list, regulations would be tightened ,the Treasury Secretary is living in Alice in Wonderland ,the money you might be saving us yours Google US Bank Problems List
u_s__reamer
Grinning and groveling the Japanese representatives put on Trump's clown hats and kiss the ring. No dignity in this craven display of subservience to a con-man and convicted felon.
Abe234
As predicted! In his first term he negotiated a change in costs for defence, and since we all agreed. He’s now back for more! Once you have given something he realizes he can say he wants a bit more. It is a shake down! A protection racket! Remember Japan, you don’t have to buy American systems which “lock” us into their political doctrine and military upgrades for decades. Buy Swedish, European, French et al. Co develop with Korea, UK, Australia, Germany, Canada, et al. The share holders and CEO’s in the U.S. will eventually get the message and pass it on. Sweden and France have built up their own defence industries outside of the U.S. win orders, create jobs, and more importantly can maintain their own geopolitical position.
Kotoni
I thought Japan was a proud country. Looks like I was wrong. The man publicly said, "They are coming to kiss my a..." and Japan (the samurai) is gladly going to do it. China said, "No way!!!" Japan is saying "sure." I guess the samurai mindset is gone.
JDoe
America and more specifically AMERICANS are no longer reliable economic or military allies.
All current US allies/partners should be looking for new better/stronger agreements.
Trumps reelection by Americans has ruined US reliability & credibility for decades to come.
Wasabi
Look at his desk, is it a merch seller or the desk of a world leader?
So much professionalism, is that what the USA became?
Blacklabel
sure are a lot of non Japanese posters advocating for Japan to do something really stupid and not make a quick deal on these tariffs.
grc
The pressure is on Trump to deliver after his humiliating climbdowns on China and Ukraine. Japan would be doing the rest of the world a favor by hanging tough.
stickman1760
As a convicted felon, Orange cheetoh should not be allowed in Canada. He can do whatever it is he does on zoom.
Wasabi
Accepting increase tariffs are the really stupid.
A quick deal has never been a good idea at any level.
Blacklabel
Japan is at the front of the line.
why would non Japanese be encouraging Japan to antagonize Trump and go to the back of the line where the deal gets worse?
I'veSeenFootage
There is no "deal" to be had anyway. The whole tariffs debacle stems from the fact that Trump and the absolute morons around him are convinced that having a trade deficit with another country is a bad thing. They don't understand basic global economics and will achieve nothing positive, neither for Japan nor for their own country.
Blacklabel
yeah, proving my point.
non Japanese trying to tell Japanese what to do.
without having a clue of what is going on with deals and with zero understanding of the current US/Japan relationship.
HopeSpringsEternal
Japan needs to pivot away from the outsourcing globalists aligned with the CCP ASAP.
Trump knows China's CCP is not a reliable partner, especially given Covid and why he's intent not to rely on China for manufacturing and supply chains. Japan and other countries around the world should follow!
Above will make Global economy far more resilient and improve its growth potential, while lower prices and making markets more competitive.
As Elon Musk says, you can't innovate at a world class level if you outsource manufacturing, which is also too expensive, slow and risky, especially in CCP's CHina!
bass4funk
It's coming
The morons are the previous Prsidents who allowed China and the rest of the world to take advantage of us.
Evidently, Democrats don't; that's why their richest cities are run poorly, so poorly that they can't even keep their positions. These are hard times for the party, but they do know how to take money from people. I will give them that.
Been 100 days, we have more than enough time.
Wrong again.
Blacklabel
the gift was given TO Trump. BY Japan. Made in China.
wallace
Tariffs will be based on where goods are shipped from, not where they are made. The US is not able to check where all imported goods are made.
Items may be made in Japan using Chinese-manufactured parts. The iPhone, for example, is made with parts from several countries, including Japan.
The US had a trade deficit with Japan of $68.5 billion in 2024. Not that great.
Japan could buy US LNG and import more rice, soybeans, and corn. The LNG will have to have competitive prices with the current imports.
Japan is host to the most US troops and bases, and pays the most of any foreign country. Japan needs to resist any increase from Trump.
The troop levels in Okinawa need a 50% reduction.
HopeSpringsEternal
Most don't understand, Trump is encouraging ALL trading partners to re-shore manufacturing and supply chains in order to reduce dangerous reliance on China.
This includes Japan and thus he wants these countries to adopt his policies to spur private sector investment while reducing the role of inefficient Govt.
Trump's approach will improve the Global Economy's Resiliency and Growth Potential, while lowering Prices!!
lincolnman
Well, they just wanted it to match his Chinese-made Trump Collection tie and socks...
Trump said how much he appreciated the gift from Japan Prime Minister Xi...and looks forward to visiting Seoul soon...
wallace
Millions of Tesla car parts are made in China, with Tesla's Gigafactory in Shanghai serving as a major production and export hub.
Hit me, hit me with your hypocrite stick! Two fat ladies from Beijing. From the gardens of Japan to the Great Plains. Hit me, hit me with your hypocrite stick!
HopeSpringsEternal
Trump's focused on reshoring and re-industrialization of things that matter, especially, pharma, auto, steel, aluminum, chips, ships, and anything related to defense.
China can try to dominate non-strategic areas.
Trump wants Japan and other trading partners to become more self-sufficient in order to keep global economy from increasingly dangerous concentration of risk in China related to manufacturing and supply chains.
Japan needs to adopt Trump's economic policies and not become captive to CCP and their Globalists partners!
Wasabi
The only good business trump had in his life is selling made in China cap to credible people.
I'veSeenFootage
I don't think anyone here has relations with the Japanese government and is trying to "tell them what to do". It's a comment board. People are commenting.
Peter Neil
The last container ship from Asia to the west coast of the US will dock two days from now. None are in transit.
Japan does not need to rush. Trump will fold like a cheap blue suit. Waves of shortages start next month, leading to massive shortages by July.
Small businesses will start folding, parts out of stock, no shoes or clothes, no TV’s, appliances, furniture, computers, socks, pharmaceuticals, larger retailers collapsing, etc.
Amazon will be sucking wind, tens of thousands of truck drivers unemployed (those goods were on trucks from the ports). The longer Japan waits, the more Trump collapses.
You think people are unhappy now? Wait a few months and see unhappiness turn to anger.
wallace
Productions have already moved from China to Vietnam and Malaysia. This trend is largely driven by factors like rising labor costs in China.
chatanista
Still, will be interesting to see what the Japanese negotiators can get from Trump administration. Dont think we can expect much.
Nibek32
Trump has the lowest approval rating at 100 days than any president in 70+ years.
Even maga has turned on him for his disastrous performance.
Countries are realizing they don’t have to bend a knee to him, he’s shown his weakness and backed down on everything.
oyatoi
Japan’s choice of gift would only have been decided upon after serious deliberation. Everything about it would’ve been planned meticulously. The incontrovertible message is that China will make us rich and the US is banking on a loser if it thinks otherwise.
What’s lost on Japan is that America under Trump has moved beyond the shallow win-win mindset that not even the Japanese themselves believe in. Even more so than diplomacy, trade is war by other means. The Japanese understand this, ditto the Koreans and the Chinese, don’t pretend otherwise.
America has signaled that it is no longer prepared to powerlessly watch itself get shafted on trade by nations which wrote the book on non tariff barriers and industrial policy. If you want to trade with the US, there needs to be far greater reciprocity.
kohakuebisu
I'm happy for the Japanese delegation to wear MAGA hats and give Trump PR victories. It does not mean they are giving Trump any concessions on trade. The minister pictured here is an LDP appointee and likely has little power. The real decisions will be made by veteran bureaucrats at MITI etc. They will know if there is any substance in what Trump is threatening.
elephant200
@kohakuebisu: Don't be happy to early, when Trump runs out of patience, he will bite your country like a shark. The tactics now Japan is playing were those China had been playing from 2018-2019. Donald Trump is a thief and a thug, your representatives were emboldening him to behaving wildly!
Wasabi
Deal made under threat will NEVER be good on the long term. The USA will have to pay the price one way or the other to no doubt about that.
I hope trump live long enough to see that.
MiuraAnjin
Food? Fair enough; we all know that the LDP is beholden to the 1% of Japanese who are farmers.
But tariffs on automotive products are 0% and have been for decades. Does Trump want us to actively subsidise American inefficient behemoths and components that do not meet international safety standards?