President Donald Trump intervened directly in trade negotiations with Japanese officials on Wednesday, a sign that the United States is at stake after its tariffs shook the economy. This led the administration to assure the public that they would reach deals quickly.

The Republican President attended the meeting with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. These two economic advisors play a key role in his tariff and trade policies.

“Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!” Trump wrote in a social media post ahead of the meeting.

He posted the following: “A great honor to have just met the Japanese delegation on trade. Big Progress!”

The choice of the president to directly engage in negotiations shows his desire to finalize as many trade agreements as possible, especially since China is working on its own. Trump’s reputation is being tested as a dealmaker, as nations around the globe try to limit the damage that his import taxes could cause.

The tariffs announced by Trump on April 2 triggered panic on the financial markets and sparked recession fears. This prompted the U.S. President to put a 90-day partial hold on import taxes and to increase his already high tariffs against China up to 145%.

The pause spared Japan 24% tariffs across the board, but there is still a baseline of 10% tariffs and a tax of 25% on steel and aluminum, imported auto parts, and exported cars.

The talks on Wednesday will be a key indicator as to whether or not the Trump administration is able to reach a deal that reassures markets, American voters, and foreign allies.

China’s economic rival, the United States, is also trying to take advantage of the chaos surrounding Trump’s announcements. Its leader, President Xi Jinping, has been touring Southeast Asia, promoting China as a reliable trading partner.

Japan is one of the first countries that have begun open negotiations with the U.S. Trump, and other officials in the administration have stated that the phones are “ringing off the hook” from dozens of countries eager to make deals with a President who believes he’s a master negotiator. Israel and Vietnam both offered to eliminate their tariffs, but Trump was unsure if that would be enough.

Trump will meet the Italian Prime Minister Giorgia Meloni on Thursday. She is likely to carry messages from the European Union on how to resolve the tariffs Trump imposed on the 27-state group.

Still, the U.S. president may also be feeling increased domestic pressures to settle any tariffs, as many voters say they returned Trump to the White House with the specific goal of improving the economy. California Gov. Gavin Newsom filed a lawsuit Wednesday that argues that Trump overstepped his authority by declaring an economic emergency to levy his tariffs, with the Democrat saying in a statement that the tariffs have caused economic chaos.

Federal Reserve Chair Jerome Powell warned Wednesday that Trump’s policies on tariffs would harm the U.S. Economy, an explicit warning to the White House, which is trying to portray the import taxes as long-term benefits for the country.

Powell, speaking at the Economic Club of Chicago, said that the tariffs announced thus far are much higher than expected. The same will likely be true of their economic effects, which include increased inflation and slower growth.

Japan has scrambled to react, as have many other countries, to try to minimise the economic impact of Trump’s tariffs. It has created a task force to assess tariffs’ impact and to offer loans to companies that are worried.

The government has not made any official statements about what concessions it might make during these negotiations.

The administration has not been transparent in its demands. The administration has not been transparent about its requests.

Trump wrote on Wednesday that “Japan will be coming to the United States today to discuss Tariffs, Military Support Costs and Trade Fairness.”

U.S. officials have met with Japan’s Economic Revitalization Minister Ryosei Akazawa, the country’s chief negotiator on trade issues.

Akazawa, before boarding his plane at Tokyo Haneda Airport, told reporters: “I’m prepared for the discussions.” “I will negotiate to protect our national interests.”

He stated that Bessent, as well as U.S. trade representative Jamieson Greer, were “known to have a pro-Japan stance and to be professionally talented”, and that he hoped to develop a trusting relationship with them.

He said, “I think we can have good discussions toward a win/win relationship which will serve the national interests of both Japan and America.”

Japan has argued that Trump’s tariff measures will likely violate bilateral trade agreements and World Trade Organization rules. Ishiba, who has opposed retaliatory trade tariffs, has also said that he does not want to rush into a settlement as he doesn’t desire concessions.

Xi visited Malaysia on Wednesday, and assured its leader that China would be a partner in the region and stand by its Southeast Asian neighbours after global economic shocks.

Xi has been touring Vietnam, Malaysia and Cambodia on a tour that was likely planned before tariff uncertainty, but that he is also using to promote Beijing’s role as a source for stability in the area and to strengthen relationships in this part of the globe as he searches for ways to reduce the 145% tariffs Trump keeps on China.

“China and Malaysia, in response to shocks in global order and economic… globalization, will stand with other countries in the area to combat the countercurrents and undercurrents in geopolitical… conflict, as well the countercurrents in unilateralism, and protectionism,” Xi stated at a dinner hosted by Malaysian Prime Minister Anwar Ibrahim.

He added, “Together we will safeguard our Asian family’s bright future.”

Xi promised Malaysia and Vietnam increased access to the Chinese market during his visit, but few details were revealed.

Trump said he would also like to know how much Japan contributes to the cost of U.S. soldiers stationed in Japan, as a way to deter China.

The Japanese government is concerned about Trump’s call for increased defense spending.

In its national security plan, Japan plans to double defense spending annually to $10 trillion or 2% of GDP by 2027. However, there are concerns that Trump could ask that this be increased to 3% of GDP. Gen Nakatani, the Japanese Defense Minister, said on Tuesday that Japan’s military budget is approximately 1.8% of its GDP.