Japan, EU make progress on US trade talks

Japan and the EU lauded progress on trade talks with the US, but warned Washington of consequences if deals were not reached soon.

Tokyo said negotiations over lowering tariffs could conclude in June, but its finance minister pointed out that Tokyo was the world’s biggest holder of US Treasurys, giving it leverage over Washington: “Whether or not we use that card is a different decision,” he said.

The European Union trade commissioner, meanwhile, told the Financial Times that the bloc would increase purchases of US goods by €50 billion ($57 billion) to assuage the Trump administration’s complaints of a transatlantic trade imbalance, but warned of a “robust response” if no deal was reached.