President Donald Trump described his unexpected decision on Wednesday to personally engage in trade talks with a Japanese delegation in Washington as a sign of "big progress" amid ongoing tensions over the tariffs he’s placed on global imports. Japan is among the first nations to officially begin negotiations, serving as an early indicator of whether the U.S. is open to easing the tariffs that have unsettled financial markets and raised concerns about a possible recession.

Trump shared a message on social media: "A Great Honour to have just met with the Japanese Delegation on Trade. Big Progress!” However, he didn’t provide any specific information about what was discussed.

Trump met with Ryosei Akazawa on Wednesday, a close associate of Japanese Prime Minister Shigeru Ishiba. Akazawa only recently joined the cabinet, holding the relatively junior Minister for Economic Revitalisation role.

Sources familiar with Tokyo's plans said Japan hadn't expected Trump to join what they saw as an initial fact-finding meeting and had intended to keep the discussions focused strictly on trade and investment. After the talks, Akazawa spoke briefly to reporters, revealing little about the conversation but confirming that both sides agreed to meet again later this month. He noted that Trump emphasised securing a deal with Japan as a "top priority." Akazawa also mentioned that the topic of exchange rates, which Trump has previously accused Japan of manipulating, did not come up during the meeting.

The dollar briefly rose by 0.54% against the yen after Akazawa’s foreign exchange comments. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and other officials attended the meeting.

Earlier on Wednesday, Trump mentioned that he planned to bring up the issue of Japan’s financial contributions to hosting US troops, representing America’s most considerable overseas military presence. While Akazawa declined to share details of the negotiations, he firmly urged the U.S. to lift tariffs on Japanese goods. Japan currently faces 24% tariffs on its exports to the U.S., though most of Trump's tariffs are on a 90-day pause. Still, a 10% general tariff and a 25% tax on cars remain essential to Japan’s export-driven economy.

Bessent noted that there's a "first mover advantage," especially since Washington has revealed that over 75 countries have asked for talks following Trump’s recent decision to impose broad tariffs on numerous nations, both allies and rivals. Despite this, Ishiba said on Monday that Japan, a close U.S. ally, isn't in a hurry to finalise a deal and has no intention of making major compromises. Akazawa mentioned he believes the U.S. aims to reach an agreement within 90 days.

Trump has repeatedly criticised the U.S. trade deficit with Japan and other nations, arguing that American companies have been mistreated due to biased trade policies and deliberate attempts by different countries to keep their currencies weak.