Commerce Secretary Howard Lutnick says the US has talked with the European Union about rolling back tech rules in exchange for "a cool steel and aluminum deal." Lutnick discusses conditions for any steel, aluminum deal with the EU on "Bloomberg Surveillance." ...

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies involved in the US-Japan tariff negotiations Core Insights - The third round of US-Japan tariff negotiations did not result in significant changes, with Japan continuing to advocate for the removal of reciprocal tariffs on autos, steel, and aluminum [2] - Economic security emerged as a key theme in the discussions, reflecting its importance in both the US-Japan negotiations and the recent US-UK trade agreement [4] - The Japanese government is exploring the establishment of a "Japan-US fund for reviving the shipbuilding industry," indicating a focus on enhancing cooperation in sectors deemed critical for national security [6] Summary by Sections Trade Negotiations - The third round of negotiations on May 23 saw no major shifts in Japan's position, with a focus on achieving an agreement during the upcoming G7 summit [2] - A telephone conversation between Prime Minister Shigeru Ishiba and President Donald Trump prior to the negotiations covered various topics, including tariff negotiations and economic security [3] Economic Security - Economic security was highlighted as a significant factor in the negotiations, with implications for tariffs on key imports [4] - The discussions included Japan's interest in securing rare earth supplies and cooperation on alternative technologies, further emphasizing the strategic nature of the negotiations [3] Shipbuilding Industry - The potential establishment of a Japan-US fund for the shipbuilding industry could lead to deeper collaboration in this sector, which is viewed as vital for national security [6] - The report suggests that government initiatives aimed at enhancing economic security will impact a wide range of Japanese companies beyond just shipbuilding [6] Investment Opportunities - The trade talks are expected to encourage further investment in the US, particularly in shipbuilding and other sectors related to economic security [5] - President Trump's recent announcements regarding commercial deals in the Middle East, totaling around $2 trillion, may also serve to attract more Japanese investment in the US manufacturing sector [7]