US-Japan trade tensions intensified as reports confirmed a second round of tariff negotiations would begin Thursday in Washington. Early morning coverage showed Trump's efforts to ease auto tariff burdens while touting his "100 days achievements." Japan's chief negotiator Ryosei Akazawa departed for discussions as Prime Minister Ishiba sought bipartisan advice on handling Trump policies.
Business impact became clearer by midmorning with analysis showing varied consequences for Japanese automakers—Mazda and Mitsubishi facing difficulties while Honda might benefit. The Bank of Japan reportedly considered postponing interest rate hikes due to tariff impacts.
The day's most significant economic development came in the afternoon with reports that US GDP contracted by 0.3% in Q1 2025—the first negative growth in three years. This unexpected contraction followed strong performances in prior years and was attributed partly to anticipatory imports ahead of Trump's tariff implementation.