U.S. has no specific currency targets in Japan tariff talks: Bessent #JapanFinance

The United States has “absolutely no currency targets” in its trade negotiations with Japan, Treasury Secretary Scott Bessent said Wednesday, as the two countries aim to find some middle ground following President Donald Trump’s imposition of severe tariffs on imports.

Bessent’s statement, making it clear that the Trump administration will not pursue specific foreign exchange rates in the talks, came a day ahead of a meeting with Japanese Finance Minister Katsunobu Kato in Washington, with currency policy likely to top the agenda.

U.S. Treasury Secretary Scott Bessent speaks to reporters in Washington on April 23, 2025. (Kyodo) ==Kyodo

Kato confirmed to reporters that the meeting with Bessent will take place on Thursday. He also said late Wednesday that he described Trump’s hefty tariffs on imports as “extremely regrettable” when speaking at a meeting of his Group of Seven counterparts in the U.S. capital.

The upcoming meeting is part of the bilateral tariff negotiations that formally kicked off last week. Speculation had been rife that Bessent would bring up exchange rates for discussions with Kato, given that Trump has accused Japan of devaluing its currency and purposely creating a trade surplus with the United States.

The Japanese government has dismissed the claim as untrue, saying it remains committed to the G7’s longstanding agreement that currencies should reflect economic fundamentals and that excessive exchange rate volatility can adversely affect the real economy.

Bessent also said Wednesday that the United States is expecting Japan to honor the G7 agreement, adding, “As I’ve mentioned several times…we are looking at multiple factors.”

To reduce the U.S. trade deficit, he said the Trump administration believes tariffs, nontariff trade barriers, currency manipulation and government subsidies should be addressed as a matter of importance.

At the G7 meeting, Kato said he called on the United States to review its tariff policy as soon as possible, noting that it has raised concerns about its consistency with World Trade Organization agreements.

Kato said he voiced similar concerns at a meeting of Group of 20 finance chiefs, which was also held on the sidelines of the semiannual gatherings of the International Monetary Fund and World Bank Group.

Kato said he emphasized that U.S. tariffs, countermeasures by some countries, and Russia’s invasion of Ukraine have destabilized financial markets and created uncertainty in the global economy.

Japanese Finance Minister Katsunobu Kato speaks to reporters in Washington on April 23, 2025. (Kyodo)

Among major trading partners, the Trump administration has prioritized negotiations with Japan, a key U.S. security ally with an export-driven economy.

Trump and his administration officials have not limited the scope of the ongoing talks to trade issues. As for Japan, they have urged Tokyo to pay more to host U.S. troops.

On the trade front, Trump particularly questioned what his officials see as Japan’s nontariff barriers, along with his claim that Tokyo has devalued the yen to benefit Japanese carmakers and other manufacturers.

The Trump administration’s new 24 percent tariffs on goods imported from Japan have been paused until early July, as is the case with many other countries targeted by its country-specific, so-called reciprocal duties.

But Japan still faces sector-based tariffs, including an additional duty of 25 percent on car imports, which is especially problematic for the country, and a universal levy of 10 percent.

The meeting follows last week’s visit to Washington by Japan’s chief tariff negotiator.

On April 16, Ryosei Akazawa, minister in charge of economic revitalization, met with Trump in the Oval Office for 50 minutes before taking part in a meeting with Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

Akazawa is planning to visit the United States again next week, with a source close to him saying his talks with Bessent may take place on May 1.

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