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Donald Trump's tariff negotiations with Japan show progress, but Federal Reserve Chair Jerome Powell warns of potential economic risks.
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Donald Trump joined tariff talks with a Japanese delegation led by Akazawa Ryosei, the country’s chief negotiator. Mr Trump wrote later on Truth Social, his social-media platform, that there had been “Big Progress”. Japan is seeking a reduction of America’s “reciprocal” tariffs. Japan is one of the first countries to enter formal negotiations with America. Other world leaders will be watching—including Giorgia Meloni, Italy’s prime minister, who has also arrived in Washington for tariff talks.

Jerome Powell, the chair of the Federal Reserve, warned that Mr Trump’s tariffs could jeopardise the central bank’s “dual-mandate goals” of ensuring low inflation and a healthy job market. American stocks dipped on his remarks. Later, after the trade talks between America and Japan, the Nikkei 225 rose as markets opened in Asia.

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