US President Donald Trump says he will join negotiations with Japan on tariffs, after both countries expressed confidence in striking a deal.
President Trump issued a 90-day pause on his 24-per cent tariffs on Japan last week, but a 10 per cent tariff remains in place.
Japan is the biggest investor into the United States and a close strategic and economic ally.
Japanese Prime Minister Shigeru Ishiba has described the levy situation as "a national crisis."
The White House meeting with Tokyo's envoy is being closely watched as a possible barometer for talks with other countries, as trade officials line up to negotiate over Mr Trump's punishing tariffs.
"Japan is coming in today to negotiate Tariffs, the cost of military support, and 'TRADE FAIRNESS.' I will attend the meeting, along with Treasury & Commerce Secretaries," Mr Trump posted on Truth Social.
"Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!"
As he left for the White House meeting, Japan's lead tariff negotiator, Ryosei Akazawa, spoke of seeking a "win-win" outcome, while protecting Japanese national interests.
"I am confident that we will be able to build a relationship of trust and conduct good negotiations that will lead to a win-win relationship," Mr Akazawa, Japan's economic revitalisation minister, told reporters.
Honda moves production to US
The Trump administration has imposed steep levies on imports of Japanese cars, steel and aluminium.
Automaker Honda said on Wednesday it will shift production of its hybrid Civic model from Japan to the United States in June or July, but stopped short of saying the reason was US tariffs.
The rationale behind the decision "is not a single issue", a Honda spokesperson said.
"The decision is based on the company's policy since its foundation that we produce cars where the demand is."
The vehicle, however, represents only a small part of the Japanese company's annual output.
Mr Akazawa will also hold talks with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer during his trip.
Purchases of US defence hardware and natural gas from Alaska could be up for negotiation, analysts said.
The minister, who studied at a US university and is close to Prime Minister Shigeru Ishiba, said he wants to "protect our national interests" in the talks with Mr Bessent and Mr Greer, who are "fond of Japan".
Tariffs could curtail Japan's growth
The Daiwa Institute of Research warned that Trump's reciprocal tariffs could cause a decline of 1.8 per cent in Japan's real GDP by 2029.
US officials are also set to hold talks with South Korea and others, but Stephen Innes at SPI Asset Management called the discussions with Japan a "canary in the tariff coal mine".
"If Japan secures a deal — even a half-baked one — the template is set. If they walk away empty-handed, brace yourself. Other nations will start pricing in confrontation, not cooperation," he wrote in a newsletter.
And "don't forget the elephant in the vault: Japan's still the biggest holder of US Treasuries. And that, my friend, is a whole lot of leverage", he added.
Top Japanese officials including Mr Ishiba have brushed aside claims that Tokyo may have deliberately created volatility in the US Treasury market to force Trump's pause of reciprocal tariffs, saying that is not what allies would do.
Mr Ishiba called Malaysian Prime Minister Anwar Ibrahim and French President Emmanuel Macron in separate calls on Wednesday to discuss the impact of US tariffs and China's retaliatory actions.
Japan's prime minister told Mr Anwar that "the current situation is serious for Japanese companies operating in South-East Asian countries" and that he was willing to listen to the voices of South-East Asian countries, according to the foreign ministry.
Mr Macron and Mr Ishiba also discussed the impact of the tit-for-tat US-China tariffs "on the global economy and the multilateral trade system," and "affirmed that it is in the common interest of Japan and France to maintain and strengthen a free and open international order based on the rule of law," the ministry said.
China announces new trade negotiator amid tariff war
Meanwhile, China has announced a new trade negotiator as it battles the US in an escalating trade war.
Beijing announced that Li Chenggang had replaced Wang Shouwen.
Mr Wang was involved in previous trade negotiations with the US in 2020.
It wasn't clear what prompted the change.
Prior to his appointment as trade negotiator, Mr Li spent about four-and-a-half years as China's ambassador to the World Trade Organization, the body that governs global commerce.
Beijing has appealed to the body in its tariff dispute with the US.
Earlier on Wednesday, China announced its economy expanded at 5.4 per cent annual pace between January and March, supported by strong exports.
Its exports helped it achieve a 5 per cent annual growth rate in 2024, but analysts forecast the world's second largest economy will slow in coming months as US tariffs take effect.
Asked about the possibility of talks with the US, Chinese Foreign Ministry spokesperson Lin Jian said America started the tariff war and China was only taking "necessary countermeasures" to defend its rights and interests.
"If the US truly wants to resolve the issue through dialogue and negotiation, it should stop using maximum pressure and stop threats and blackmail. For any dialogue to happen, it must be based on equality, respect and mutual benefit," Mr Lin told a daily briefing.
President Xi Jinping has been making the case that China is a source of "stability and certainty" in global free trade as he tours South-East Asia this week — implying that China is a more reliable trade partner than the US.
ABC/wires
