Saudi-UK partnerships drive trade surge with over 60 initiatives across 13 sectors

WASHINGTON: President Donald Trump touted “big progress” in tariff talks with Japan on Wednesday, in one of the first rounds of face-to-face negotiations since his barrage of duties on global imports roiled markets and stoked recession fears.

Japan had not expected the president to get involved in Wednesday’s talks, viewing them as a preliminary, fact-finding mission, a sign that Trump wants to keep tight control over negotiations with dozens of countries expected over coming days and weeks.

Tokyo had also been hoping to limit the scope of the talks to trade and investment matters. But announcing his involvement early Wednesday, Trump said thorny issues including the amount Japan pays towards hosting US troops were among discussion topics.

“A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!” Trump said in a social media message that contained no details of the discussions.

Opposite Trump was Ryosei Akazawa, a close confidant of Japanese Prime Minister Shigeru Ishiba who serves in the relatively junior cabinet position of economic revitalisation minister.

Speaking to reporters after the talks, Akazawa gave few details but said the parties had agreed to hold a second meeting later this month and that Trump had said getting a deal with Japan was a “top priority.”

Exchange rates, which the Trump administration has said Japan and others manipulate to get a trade advantage, were not part of the talks, Akazawa added.

The dollar strengthened against the yen after his remarks on forex, up around 0.5 percent on the day. Tokyo denies it manipulates its yen currency lower to get make its exports cheaper.

Akazawa held a 50-minute meeting with Trump at the White House before another session with his Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer that stretched to almost an hour and a half, according to Japanese readouts of the talks.

Japan’s prime minister, who has previously said he won’t rush to reach a deal and does not plan to make big concessions, sounded a more cautious tone speaking to reporters later in Tokyo.

“Of course, the negotiations will not be easy going forward, but President Trump has stated that he wants to give top priority to the talks with Japan,” Ishiba said.

Italian Prime Minister Giorgia Meloni heads to the White House on Thursday to discuss tariffs imposed on the EU with Trump, while Bessent has invited South Korea’s finance minister to Washington for talks next week.

FIRST MOVER ADVANTAGE

Trump has long complained about the US trade deficit with Japan and other countries, saying US businesses have been “ripped off” by trade practices and intentional efforts by other countries to maintain weak currencies.

Japan has been hit with 24 percent levies on its exports to the US although these rates have, like most of Trump’s tariffs, been paused for 90 days. But a 10 percent universal rate remains in place as does a 25 percent duty for cars, a mainstay of Japan’s export-reliant economy.

Bessent has said there is a “first mover advantage” given Washington has said more than 75 countries have requested talks since Trump announced sweeping duties on dozens of countries — both friend and foe — earlier this month.

Akazawa declined to comment on the matter, adding only that he strongly requested a revocation of the tariffs and that he believed Washington wanted to secure a deal in the 90-day window.

Washington is hoping to strike deals with countries that would cover tariffs, non-tariff barriers and exchange rates, Bessent has said, though Tokyo had lobbied to keep the latter separate.

Trump earlier this month lambasted Japan for what he said was a 700 percent tariff on rice, a figure Tokyo disputes. Levies on autos are particularly painful for Japan as they make up nearly a third of shipments to the US, its biggest export market.

Japan hopes that pledges to expand investment in the US will help to convince the US that the allies can achieve a “win-win” situation without tariffs.

Possible Japanese investment in a multi-billion-dollar gas project in Alaska could also feature in tariff negotiations, Bessent said before Wednesday’s talks.

“It sounds like the Trump administration really does want a quick deal, which suggests it will be a less substantive deal,” said Tobias Harris of Japan Foresight, a political risk advisory.

“My baseline is that if the US really starts making demands on agriculture and maybe also on some of the auto regulations, it becomes a lot more contentious and hard to do quickly.”

KARACHI: Pakistan’s government is mulling “very good options” which range from importing crude oil from the United States (US) to abolishing tariffs on American imports, an official privy to the matter said on Wednesday, as Islamabad attempts to offset a trade imbalance that has triggered higher tariffs from Washington.
US President Donald Trump has imposed a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries. Pakistan faces a 29 percent tariff due to a trade surplus with the US of about $3.6 billion, although that is subject to the 90-day pause Trump announced last week.
The US is the largest buyer of Pakistan’s textile goods, importing goods worth $5.43 billion last year through June, according to State Bank of Pakistan. In return, cash-strapped Pakistan imported $1.88 billion worth of American goods, resulting in the trade imbalance.
Countries are scrambling to find ways to lower their US tariff burdens, and Pakistan is no different. Pakistan’s Finance Minister Muhammad Aurangzeb said last week Islamabad will send a high-level delegation to Washington to discuss the American tariffs.
“There have been talks of Pakistan potentially importing oil, soya been (oil) and cotton from the US. That’s already it,” an official who spoke to Arab News on condition of anonymity as he was not authorized to speak to media, said.
The finance ministry did not respond to Arab News’ request for a comment till the filing of this report.
The official said the Pakistani delegation will inquire about the expectations of the American government regarding trade, which could include abolishing duties or non-tariff barriers against US products.
“Or they may ask us to buy more cotton from them,” the official said. 
A senior official from Pakistan’s commerce ministry who spoke on condition of anonymity as well, said the discussions were at an “immature stage” and further meetings would be held to finalize them. 
“What decisions are taken, what we offer to them, all options are being examined,” he said. “Everything is on the cards but what is finalized, that cannot be said right now.”
Pakistan spends about $17 billion annually on oil imports, most of which come from the United Arab Emirates and Saudi Arabia. Pakistan is also counted among the largest buyers of cotton, which it uses as raw material for its huge textile industry. Most of Pakistan’s cotton imports come from the US.
As per official data, Pakistan spent more than half a billion dollars ($578 million) last year on the import of 204,890 tons of raw cotton and 119,845 tons of soya bean oil after the local harvest was found to be in poor quality.
In 2023, Pakistan began buying discounted Russian crude oil banned from European markets due to Russia’s war in Ukraine. Muhammad Waqas Ghani, head of research at the Karachi-based JS Global Capital Ltd., said Pakistan faces limitations in diversifying its product slate when it comes to Russian crude oil.
He said this was because Russian crude oil yields a higher output of furnace oil. a less desirable fuel in the country’s evolving energy mix. 
“Importing US crude could offer access to a wider range of crude grades, better aligned with Pakistan’s long-term goal of phasing out furnace oil,” Ghani explained. “This move would also open doors for improved trade terms and potentially pave the way for tariff relief which is our primary objective for now.”
‘OTHER VERY GOOD OPTIONS’
Pakistan’s cotton production has been hit hard by low quality of seeds and climate-induced calamities such as floods caused by excessive rains.
“Apart from that (US oil import) there are other very good options which are being discussed,” the official said. 
However, he confirmed that none of these options had been finalized yet as the delegation would want to meet the American officials and gauge Washington’s expectations.
“Let’s listen to them first,” he said. 
Pakistan’s financial experts and independent think tanks have advised Islamabad to establish trade agreements with emerging economies such as Africa or the Central Asian Republics (CARs) or reinforce existing partnerships with China or the Middle East. 
Financial experts have also called upon the country to use America’s imposition of tariffs as an opportunity and diversity its exports market to other regions to mitigate potential losses.