The finance ministers of Japan and the United States discussed exchange rate policies during a meeting on Thursday. The meeting took place as part of negotiations over the sweeping tariffs imposed by US President Donald Trump.
Japanese Finance Minister Katsunobu Kato, who met with US Treasury Secretary Scott Bessent in Washington, told the press that both sides agreed that exchange rates should be set by market actors and recognized that sudden currency fluctuations could cause economic damage. Kato said Bessent did not comment on exchange rate levels or targets. He also called Trump’s tariffs “extremely regrettable” and called for a review of these decisions. The meeting was an extension of negotiations between Japan and the United States, which officially began last week after the Trump administration raised import tariffs, citing unfair trade practices. The Trump administration has prioritized tariff talks with Japan, one of its most important trading partners. Japan is an important security ally of the US and has an export-oriented economy. In the first round of negotiations, the exchange rate issue was not on the agenda, leaving this topic to the finance ministers. However, the Trump administration claimed that Japan was deliberately keeping the yen low to gain a competitive advantage, especially in the automotive sector. Japanese officials rejected these allegations, arguing that exchange rates should move steadily based on economic fundamentals.
