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Former U.S. President Donald Trump surprised the world once again by personally stepping into early-stage trade talks with Japan. What was expected to be a low-profile diplomatic discussion turned into a more assertive negotiation as Trump expanded the conversation to include military spending and the cost of U.S. troops stationed in Japan.

🔹 Japan Caught Off Guard, U.S. Pushes Forward
Trump's nearly 50-minute meeting with Japan’s chief negotiator Ryosei Akazawa was followed by broader talks involving U.S. Treasury Secretary Scott Bessent and other top officials. While Japan had anticipated a focus on trade and investment, Trump introduced the topic of Japan's contribution to U.S. military expenses.
He later posted on social media that the talks were a “major step forward,” though he shared no further details. Japanese officials were surprised by his direct involvement but acknowledged that the U.S. sees trade negotiations with Japan as a priority, with more deals expected with other global partners.

🔹 Ishiba: U.S. Trade Talks Are a Top Priority
Japanese Prime Minister Shigeru Ishiba commented respectfully:

“Trade relations with the United States remain a top priority. I will visit the U.S. at the most appropriate time,” he told reporters in Tokyo.
Since Trump implemented broad tariffs in April, more than 75 countries have expressed interest in trade negotiations with the U.S.

🔹 Defense Spending and Auto Tariffs Create Tensions
Trump criticized Japan for its defense budget, reportedly pushing for an increase to $150 billion, which would represent 2% of GDP, beyond the current financial plans through 2027. Tokyo fears the U.S. may demand even more — potentially up to 3% of GDP.
In addition, Japan’s automobile exports are heavily impacted by a 25% tariff, with a baseline 10% duty still in place. Japan has called on Washington to remove these measures entirely and requested that currency exchange rates remain off the negotiating table. The yen weakened slightly after Akazawa clarified that foreign exchange manipulation was not discussed — a move that helped reassure markets.

🔹 Japan’s Strategy: Investment Instead of Confrontation
To ease tensions, Japan is considering major investments in the U.S., including participation in a multi-billion-dollar Alaskan gas project. Tokyo argues that such initiatives could lead to a “win-win” scenario that avoids further threats of retaliatory trade measures.
U.S. Treasury Secretary Scott Bessent said Japan could be among the “first movers” to benefit from the renewed trade focus, given the international attention on Trump’s tariff system.

🔹 Trump Remains Tough: Focus on Autos and Rice
Trump’s aggressive trade stance hasn’t changed. He recently claimed Japan imposed a 700% tariff on American rice, a statement Tokyo denied.
The auto sector, which accounts for 30% of Japan’s exports to the U.S., remains the most vulnerable to current and proposed tariffs.

🔹 Markets React Positively
The markets responded favorably to the developments:

📈 JPY/USD rose by 0.49% to 142.60

📈 Japan’s Topix Index climbed 1%

📈 Hong Kong’s Hang Seng gained 1.6%

📈 Australia’s ASX 200 added 0.6%

📈 Shanghai Composite edged up 0.2%

📈 S&P 500 Futures increased 0.7%

#TRUMP , #globaleconomy , #Tariffs , #TradingCommunity ,#Geopolitics

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While President Donald Trump proudly boasts that his tariffs generate a stunning $2 billion per day for the United States, official figures paint a very different picture.
According to U.S. Customs and Border Protection (CBP), more than $500 million has been collected since April 5th under newly implemented reciprocal tariffs — part of 15 trade actions initiated since January 20, 2025. In total, the tariffs have generated over $21 billion. However, the average daily revenue is only about $305 million, as confirmed by a Treasury Department report released on Monday.

❌ Trump’s Claims vs. Reality
Trump has repeatedly claimed that his "reciprocal tariffs" generate at least $2 billion daily, but this figure is not supported by official data. In fact, CBP clarified that even during a 10-hour financial system outage — which temporarily blocked importers from submitting tariff codes for goods already en route — the average daily intake remained steady at $250 million.
This gap between Trump’s narrative and the actual numbers raises eyebrows not only among economists but also among importers who struggled with system disruptions during the glitch.

💊 What’s Next? Cars, Pharmaceuticals, and More Tariffs
In early April, the Trump administration slapped a 125% tariff on all Chinese imports, including a 90% tax on packages under $800 that were previously exempt under the "de minimis" rule. At the same time, sector-specific tariffs on the auto industry remain in place, and new trade policies targeting the pharmaceutical industry are expected soon.
Originally, the administration had planned sweeping new tariffs on dozens of trading partners but quickly scaled back to a temporary 10% universal rate, excluding China. In retaliation, China raised its own tariffs to 125%, with its Ministry of Commerce stating the country is “ready to fight to the end.”

However, Beijing also signaled that it may be willing to de-escalate — if Trump fully reverses his tariff regime and returns to a path of mutual respect and cooperation.
While President Trump portrays his strategy as a resounding economic triumph, the numbers tell a different story: his tariff policies are far from the financial windfall he claims, and China’s growing defiance suggests the trade war is far from over.

#TRUMP , #Tariffs , #TrendingTopic , #TradingCommunity , #USGovernment

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Popular Chinese fashion giants Temu and Shein are set to raise prices for U.S. customers following a fresh wave of Trump-backed tariffs set to take effect on May 2. Both companies have already warned that product prices will rise starting April 25 due to soaring operational costs caused by the new trade policy.

🔹 Trump Ends Key Loophole That Kept Prices Low
Trump’s revamped trade strategy eliminates the crucial “de minimis” rule, which previously allowed imports under $800 to enter the U.S. duty-free. This was a cornerstone of Temu and Shein’s low-cost, direct-to-consumer model, enabling them to avoid much of the regulatory burden.
With this advantage now removed, both companies will soon face import fees of 30% or at least $25 per shipment, which will increase to $150 per package in June. In some cases, total duties may even climb as high as 245% — the most aggressive tariff policy in U.S. history.

🔹 Price Adjustments and Ad Cuts Signal Strategic Shift
Shein has already notified customers it will be raising prices to reflect growing costs, while promising to do its best to minimize the impact. Temu hasn’t released figures but reports from internal logistics teams indicate a sharp decline in U.S. demand.
“Prices will remain the same until April 25. Shop now at today’s prices.”
– Shein

At the same time, both brands are cutting their U.S. ad spending:

🔹 Temu slashed its average daily ad budget on Facebook, TikTok, and YouTube by 31% between March 31 and April 13.

🔹 Shein cut ad spending by 19%, affecting visibility on platforms like Instagram and Pinterest.

🔹 Temu also began reducing Google Shopping ads on April 12.

🔹 Turning Away from the U.S., Looking to Europe and Australia
Faced with the harsh new tariffs, Temu and Shein are now pivoting toward Europe and Australia, where import thresholds are still more favorable.
Jason Wong, a logistics coordinator at Temu, confirmed that the company expects a major drop in U.S. orders and plans to expand operations in Europe and Australia.
“We’re confident that demand from the U.S. and North America will significantly decline.”
– Wong

🔹 Global Ripple Effects of Trump’s Trade War
Trump’s new trade agenda is impacting not only China and the U.S., but also over 70 other countries that are now re-evaluating their own export strategies.
Since early April, Trump’s administration has rapidly increased tariffs. Starting from 20%, rates have now escalated to 34%, 50%, and 125%. In response to retaliatory actions by China, the White House says the final cumulative impact could reach up to 245%.
According to the administration, this move targets China’s long-standing disregard for fair trade practices, sending a strong message that the U.S. will no longer tolerate one-sided trade advantages for Chinese exporters.

#USChinaTrade , #TradeWars , #TrendingTopic , #TradingCommunity , #TRUMP

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