TOKYO, April 18, 2025 (BSS/AFP) - The new US ambassador to Japan said Friday he was "extremely optimistic" that the two countries will agree a trade deal, after Tokyo's tariffs envoy held talks in Washington.

Japan's tariffs envoy Ryosei Akazawa met Donald Trump on Wednesday and held talks with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer as he looks to pare back stiff levies announced by the White House.

While there was no immediate breakthrough, the next round of negotiations is scheduled before the end of the month.

"I've met now with most of the principals who are in the room and doing the negotiating and talking this through. And I'm extremely optimistic that a deal will get done," ambassador George Glass told reporters.

"We have two very sophisticated economies that are very successful, and they are two of the top five economies of the world," he said at Tokyo's Haneda Airport.

"And we have the best and the brightest from Japan there doing the negotiations. We have the best and brightest from the United States. The secretary of Treasury, the secretary of commerce are both people that I know and have spoken with and are brilliant in their fields," he said.

"And when I saw that President (Donald) Trump then decided he was going to get involved and has now named this his top priority, that's why I have a lot of confidence that we'll get something done," Glass said.

Japanese companies are the biggest investors into the United States and Japan is a vital strategic ally for Washington in the Asia-Pacific region.

But the country is subject to the same 10 percent baseline tariffs imposed by Trump on most countries as well as painful steeper levies on cars, steel and aluminum.

Trump also imposed "reciprocal" tariffs on Japan of 24 percent, although these have been paused for 90 days along with those on other countries except China.

- Yen strength -

The talks were closely watched as a barometer of Washington's negotiations with other countries reeling from US tariffs.

Trump said after meeting Akazawa on his Truth Social platform that there had been "big progress".

Japan's Prime Minister Shigeru Ishiba warned Thursday that the negotiations "won't be easy" but added that "President Trump has expressed his desire to give the negotiations with Japan the highest priority".

"We recognise that this round of talks has created a foundation for the next steps, and we appreciate that," Ishiba said in Tokyo.

He reiterated to parliament Friday that there was still a "gap" between the two countries' positions.

In addition to taking more US goods, Trump reportedly wants Japan to buy more US defence equipment and to do more to strengthen the yen against the dollar.

Akazawa said in Washington that the strength of the Japanese currency was not discussed.

The US president also reportedly wants Japan to pay more for hosting 54,000 US troops in Japan, mostly in the southern region of Okinawa.

Japan currently pays about $1.4 billon a year towards hosting the US military.

"These talks aren't just bilateral -- they're a global litmus test," said Stephen Innes at SPI Asset Management.

"Everyone from Berlin to Seoul is watching for clues on Trump's strategy. If Tokyo can cut a deal, it may set a precedent. If not, the message is clear: everyone's fair game."

Officials from Indonesia also held talks in Washington this week, while the finance minister of South Korea, a major semiconductor and auto exporter, will meet Bessent next week.