Japan is having important talks with the U.S. about new 25% tariffs on Japanese goods set to begin on August 1. Tokyo is trying to set up meetings between its chief negotiator, Ryosei Akazawa, and U.S. Treasury Secretary Scott Bessent when Bessent visits Japan for the World Expo on July 19. Japan also wants to arrange a call before the meeting, and possibly a direct discussion between Prime Minister Ishiba and Bessent. These moves follow seven previous rounds of talks in Washington, as reported by the Japanese media outlet Yomiuri.

New Import Taxes

This article focuses on the upcoming trade talks between Japan and the United States about new import taxes starting in August. With only a few weeks left, Tokyo is eager to establish direct communication with U.S. officials, hoping for in-person meetings before the tariffs start. The U.S. plans to impose a 25% tariff on a wide range of Japanese imports, which could significantly change trade patterns and prices—especially for manufacturers with global supply chains. Up until now, there have been at least seven rounds of discussions in Washington, indicating some disagreements. However, the timing may have improved due to Bessent’s visit to the World Expo, which allows for quicker meetings without formal scheduling, prompting Akazawa’s office to act quickly. From our perspective, these trade talks have real implications for short-term prices in sensitive currencies and commodities. With Bessent visiting Japan in mid-July, there’s a growing chance for initial statements or hints at potential delays or exceptions to the tariffs. Involving Prime Minister Ishiba suggests a shift from technical details to a broader strategy. The key aspect to watch in the upcoming weeks isn’t just the tariffs themselves but their broader impacts. Changes like these can create unexpected effects on risk management, especially if currency fluctuations occur alongside new taxes. With rising U.S. obligations and ongoing monetary tightening, premium importers may become more sensitive to rate changes. Thus, short-term options could become increasingly appealing. Market makers might begin to price in volatility not just for August, but as early as the week of July 15, when either side might make comments to the media.

Impact On Trade

For now, any delay could be costly. When Akazawa makes his next move—be it a call, a leak, or a meeting—it will coincide with Tokyo’s market openings and influence futures and options pricing linked to Japanese manufacturing. We expect to see more protective strategies, such as straddles or strangles, regarding Japanese industrials and consumer tech, especially those heavily reliant on U.S. exports. In these coming weeks, it’s not just the tariffs that matter, but the calculated actions leading up to them. This includes coordination among government ministries, the involvement of high-ranking officials, and the strategic timing of international appearances. Thus, pricing moves should be approached carefully, not rashly. Monitor every press release for timing and every statement for tone. Keep orders precise and review option expiry dates; we may not have another opportunity like this before early Q4. Create your live VT Markets account and start trading now.

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