The Nikkei is down a little over 1%, erasing the gains from the move higher yesterday already. This comes as Trump warned Japan on tariffs amid a lack of progress on trade negotiations. Meanwhile, Japan is continuing to reaffirm that they won’t budge from their original stance of wanting all tariffs to be removed. From overnight:
Trump to send letter to Japan: Buy rice nowJapan Hayashi: Japan won’t do anything to sacrifice agriculture sector in US trade talks
We’re about a week away now until the first deadline of 9 July. There will definitely be extensions but we’ll have to see what becomes of those countries that are testing Trump’s patience. And it looks like Japan is slowly starting to head into that category.
This article was written by Justin Low at www.forexlive.com.