Japan is likely to take precedence in discussions with the United States regarding tariffs, moving ahead of other countries in line to address President Donald Trump's reciprocal duties. Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will be leading the negotiations, with Japan expected to be given priority due to its swift response among trading partners.

Japanese Prime Minister Shigeru Ishiba expressed concerns over the impact of the upcoming tariffs on Japan's auto industry during a cabinet meeting. Trump imposed a 24% reciprocal tariff along with a 25% auto duty on Japan, prompting Ishiba to question the compatibility of these tariffs with international agreements.

The prospect of a potential reduction in tariffs led to a surge in Japanese stocks, with the Topix rising by up to 6.7% and the Nikkei 225 by up to 6.2%. Trump's focus on reducing the trade deficit with Japan, particularly in the automotive sector, remains a significant consideration in these discussions.

Following a conversation between Trump and Ishiba, where concerns were raised about the negative impact of tariffs on Japanese companies, efforts are being made to address these issues through negotiations. Despite reports suggesting potential candidates for Japan's role in the talks, specific names have yet to be confirmed by officials.