New chapter in the trade war saga - now its Japan under fire

While we start to get somewhere with NAFTA, we are now turning another page for a fresh chapter and that is US and Japanese trade talks.

Reuters is quoting an unnamed source informing the public domain the talks will commence between Japan's economy minister Motegi and US Trade representative Lighthizer on the 21st of this month, September. 

USD/JPY has so far been more about the dollar leg when it comes to trade, but Trump has already been quite vocal about the yen's weakness and its persistent trade surpluses with the US. There have already been complaints by the Japanese to the World Trade Organization about US tariffs on imported steel and aluminium but Trump's recent commentary has put the auto industry, being Japan's flagship industry, into the spotlight. 

Wall Street Journal columnist James Freeman said he had spoken to Mr Trump on the 6th Sep and in that conversation, he said, Mr Trump described his good relations with the government of Japan, but added: “Of course that will end as soon as I tell them how much they have to pay" the FT wrote. 

However,  Japan, unlike China, is a strategic partner and ally of Washington so there is more at stake here - The Pacific - ultimately Tokyo and Washington will have to find common ground.