After visiting Japan, a message of optimism is released. Bert Beisent: The United States and Japan can reach a good trade agreement.

The visiting US Treasury Secretary, Steven Mnuchin, said on Friday local time in Japan that the two countries could reach a "good" trade agreement, but hinted that the process might take more time. Mnuchin's visit to Japan is his first since becoming Treasury Secretary. Japan's Chief Trade Negotiator, Ryosei Akazawa, told reporters before the meeting that trade was not the main purpose of this visit, so the two sides did not have in-depth discussions on this issue. However, Akazawa said the meeting had a friendly atmosphere and covered multiple topics. After the US President, Donald Trump, issued a "tariff ultimatum" to Japan on July 7th, he once again raised the issue of US-Japan trade, claiming that Japan has been taking advantage of the US. These statements were made just days before Mnuchin's planned visit to Japan and were interpreted by the media as a deliberate jab at the Shinzo Abe government. Mnuchin, on the other hand, was more optimistic in his remarks. After meeting with Shinzo Abe in Tokyo, Mnuchin said: "A good agreement is more important than a hasty one. It is still possible for the US and Japan to reach a mutually beneficial trade agreement." Despite the positive signals from both sides, there are only two weeks left until August 1st, when the US is set to raise tariffs on Japanese exports from 10% to 25%. The lack of concrete progress in negotiations indicates that there is still a considerable distance to go in reaching an agreement, especially regarding the 25% tariff on cars, which remains a major sticking point. The upcoming Upper House elections in Japan on Sunday could further complicate the negotiation process. Polls show that the ruling coalition led by Shinzo Abe may lose its majority, weakening its position in trade negotiations. Tariff disputes are the core obstacle After the meeting, Shinzo Abe told reporters that the two did not discuss specific trade details, but hoped that US Independence Day celebrations would demonstrate the strong US-Japan alliance. He urged Mnuchin to continue positive dialogue with Japan's Chief Negotiator, Ryosei Akazawa, to reach a mutually beneficial agreement. Mnuchin, on the other hand, posted on social media: "Looking forward to continuing formal talks." He emphasized that a mutually beneficial trade agreement is still possible, but also implied that more time may be needed to complete the negotiations. The three-month negotiations between the US and Japan have not produced substantive results so far, with the 25% tariff on cars remaining a major issue. This separate tariff on car imports has dealt a heavy blow to Japan's important automotive industry. Trump claims that Japan unfairly limits US car imports through non-tariff barriers. Akazawa has visited Washington seven times since April, but in his last visit in June, he did not meet Mnuchin in person. He has been in dialogue with US Commerce Secretary, Wilbur Ross, via phone, but without concrete results. Despite the challenges, Tokyo has at least successfully separated trade negotiations from discussions on defense and foreign exchange. These two areas have been criticized by Trump, accusing Japan of taking advantage of the US. Washington talks next week will be a key juncture During the US Independence Day event at the Osaka Expo, Ryosei Akazawa had a meeting with Mnuchin, but according to him, the tariff issue was not on the agenda. Instead, they discussed the importance of the US-Japan alliance and other topics. Akazawa said during the Expo: "I will continue to work towards a mutually beneficial agreement that protects Japanese national interests." He plans to visit Washington next week for further negotiations, which may be a key opportunity before the August 1st deadline. Akazawa hopes to completely eliminate all tariffs on Japan, but considering that the US has maintained some tariffs in agreements with other countries, this position seems unlikely to succeed. The upcoming Upper House elections in Japan on Sunday could further complicate the negotiation process. According to CCTV news, polls show that support for Shinzo Abe's ruling Liberal Democratic Party is declining. The latest survey shows that support for the Abe cabinet has dropped to 20.8%, a decrease of 6.2 percentage points from the previous month, approaching the 20% "resignation zone" in Japanese politics; the disapproval rate has risen to 55%, the highest since he took office. The ruling coalition of the Liberal Democratic Party and the Komeito Party may struggle to maintain a majority of seats. This article was originally published on "Wall Street View" by Xu Chao; GMTEight editor: Xu Wenqiang.