Much of the optimism in markets today is based on the idea that Trump will suspend or delay some of the tariffs due for April 9. That’s despite what Navarro and the President himself have been saying publicly.
Now some of that is based on hopium but we’re also getting inklings about a willingness to negotiate. First, you had Speaker Johnson suggesting Trump needed ‘space’ to work on his agenda. That suggested the clock was ticking and that tariffs wouldn’t be at these levels permanently.
Next, there was Trump’s own tweet about China where he threatened more tariffs but also said “Negotiations with other countries, which have also requested meetings, will begin taking place immediately”
I think that’s the key statement today.
What if Trump had just tweeted the bolded and nothing else?
Finally, there is now something like confirmation from Treasury Sec Bessent, who has long Japan ties, and writes:
Following a very constructive phone discussion with the Government of Japan,
@POTUS@realDonaldTrump
has tasked me and
@USTradeRep
to open negotiations to implement the President’s vision for the new Golden Age of Global Trade with
@JPN_PMO
Shigeru Ishiba and his Cabinet.
Japan remains among America’s closest allies, and I look forward to our upcoming productive engagement regarding tariffs, non-tariff trade barriers, currency issues, and government subsidies. I appreciate the Japanese government’s outreach and measured approach to this process.
China has chosen to isolate itself by retaliating and doubling down on previous negative behavior.
Over 50 countries have responded both openly and positively to @POTUS @realDonaldTrump’s historic action to create a fairer, more prosperous system of global trade. We look forward to meaningful negotiations with them over the coming weeks.
Does that sound like a pre-cursor to suspending the 25% tariff rate on Japan? It does to me.
