Nikkei reacts to us-japan tariff talks: will trump deliver?

2025-04-17 general

tokyo, Thursday, 17 April 2025.
The Nikkei average showed a positive response today, buoyed by speculation surrounding us-japan tariff negotiations. A meeting between President Trump and Minister Akazawa stirred market optimism. Trump hinted at progress via social media after the meeting. However, the yen’s weakness against the dollar tempers enthusiasm. Investors are closely watching these trade developments, especially their potential effects on japanese exporters. The Nikkei initially jumped by 200 yen, briefly exceeding a 300 yen gain.

Market snapshot

The Nikkei Stock Average started the day with a rebound on the Tokyo Stock Exchange [1]. The initial price was ¥33,987.01, a ¥66.61 increase compared to the previous day [1]. This positive movement reflects anticipation among investors that the US and Japan might agree to ease mutual tariffs [2]. Short-term investors are proactively buying stocks based on these expectations [2]. The yen’s depreciation against the dollar is also contributing to the increased buying activity [2].

Political signals

President Trump met with Akimasa Akazawa, Japan’s Minister of Economy, Fiscal Policy and Regeneration, on April 17 [1][2]. Trump communicated the meeting on social media, stating it was a ‘big step forward’ [2]. This communication suggests potential progress in the negotiations [2]. A market analyst suggests that Trump wants to achieve results quickly, indicating potential tariff discussions with Japan [2]. Akazawa had departed from Haneda Airport on April 16 to participate in these negotiations [5].

Expert opinions and potential outcomes

The US-Japan trade negotiations began in Washington on April 17 [3]. These negotiations serve as a crucial test to see if Trump is serious about reaching agreements with close allies [3]. Treasury Secretary Bessent seeks collective action with allies like Japan to pressure China economically [3]. Odajima, a Washington Bureau reporter, anticipates potentially severe demands from the US side [5]. Prime Minister Ishiba has urged against hasty compromises [5].

Sector impacts and key stocks

The market’s reaction varied across different stocks [2]. Fast Retailing, Advantest, and Terumo experienced increases [2]. Conversely, Nitori HD, Keyence, and Shin-Etsu Chemical saw declines [2]. These movements suggest that certain sectors are more sensitive to the tariff negotiation outcomes [alert! ‘Specific reasons for these movements not detailed in source’]. Investors should closely monitor sector-specific news to anticipate further shifts in stock values.

Historical context

Past trade agreements between the US and Japan offer context for current negotiations [7]. A trade agreement was established in 2019 during Trump’s first term, taking effect in January 2020 [7]. Japan reduced tariffs on agricultural products like beef, while the removal of US auto tariffs was delayed [7]. Trump has a history of breaking trade promises, potentially undermining the binding nature of any new agreements [6]. The initial Nikkei increase was ¥66.61 [1].

Bronnen

yen exchange rate tariff negotiations