US Treasury Secretary Scott Bessent did not push his Japanese counterpart for support on the yen during their first face-to-face talks, officials said. The two countries are seeking common ground over President Donald Trump’s sweeping tariffs aimed at reducing trade deficits and protecting domestic industries.
Japanese Finance Minister Katsunobu Kato confirmed the Group of Seven’s agreement that exchange rates should be set by markets and excessive currency volatility would harm economic stability. However, there was no reference to specific exchange rate levels or control frameworks.
The meeting came after Japan and the US launched negotiations on higher import tariffs imposed by Trump to address perceived unfair trade practices. Major trading partners have prioritized tariff talks with Japan, agreeing not to discuss currency issues initially.
Kato told Bessent that Trump’s tariffs were “extremely regrettable” and urged Washington to review its protectionist measures, which the International Monetary Fund warned could lead to a significant slowdown in world economic growth. The US has also pressed Tokyo to cover more costs of hosting US troops.
The two countries disagree on what Trump views as Japan’s nontariff barriers, with Japan maintaining that exchange rates should move stably based on economic fundamentals. Japan has conducted yen-buying and dollar-selling interventions to address speculative currency movements.
Trump’s 24% tariffs on Japanese goods are paused until July under a reprieve of reciprocal duties targeting dozens of other countries. However, Japan continues to face additional 25% tariffs on car imports and sector-based tariffs. The next round of negotiations is scheduled for later this month.
Source: https://english.kyodonews.net/news/2025/04/199b69ffd09a-update2-japan-us-finance-chiefs-discuss-currency-as-part-of-tariff-talks.html