Japan does not aim for specific currency targets during tariff negotiations, according to Bessent.
In the ongoing discussions between the U.S. and Japan, Treasury Secretary Scott Bessent has clarified that there are no currency targets set, despite Donald Trump's continuous calls for a stronger yen. Reports suggest a second round of talks will happen on May 1, with the global community closely observing this interaction as an indication of the direction other countries might take in pursuit of tariff relief.
The negotiations are focusing on tariffs, non-tariff barriers, currency manipulation, and government subsidies, as revealed by Bessent. However, he emphasizes the absence of any currency targets. Japanese Finance Minister Katsunobu Kato has shown readiness for a dialogue on exchange rates with Bessent when they convene on May 1, reports state.
A weaker yen makes Japanese exports more competitive, while a strong dollar makes U.S. exports less so. Ever since Trump announced tariffs, the yen has strengthened significantly, trading at 158 per dollar in mid-January.
Japan, an essential ally of the U.S. and the fourth-largest economy in the world, is subject to the same 10 percent baseline tariffs imposed on most countries, plus steeper levies on cars, steel, and aluminum. Trump has imposed "reciprocal" tariffs of 24 percent on Japan but has paused these, along with those on other countries except China, for 90 days.
Japanese envoy, Ryosei Akazawa, met with Trump and other senior U.S. officials last week, with reports indicating his return on May 1 for another round of negotiations. Japanese broadcasters quote unnamed sources suggesting that U.S. negotiators have stated they cannot make exceptions for Japan.
Negotiations seek concessions such as increased imports into Japan of U.S. rice and soybeans, as well as easing auto safety rules. However, both parties continue to hold differing views on tariffs, with Japan adopting a cautious approach to avoid disrupting their economy.
- Amidst the ongoing talks between the U.S. and Japan, the discussions focus on tariffs, non-tariff barriers, currency manipulation, and government subsidies.
- The Japanese Finance Minister, Katsunobu Kato, has shown readiness for a dialogue on exchange rates with Treasury Secretary Scott Bessent on May 1.
- In the global trade scenario, the tariffs imposed by President Donald Trump have prompted a stronger yen, trading at 158 per dollar in mid-January.
- Japan, being an essential ally and the fourth-largest economy in the world, is subject to the same tariffs as other countries, with additional levies on cars, steel, and aluminum.
- The Japanese envoy, Ryosei Akazawa, met with senior U.S. officials last week and is expected to return on May 1 for another round of negotiations.
- U.S. negotiators are reported to have stated they cannot make exceptions for Japan in terms of tariffs, according to Japanese broadcasters.
- Efforts are being made by both parties to secure concessions, such as increased imports of U.S. rice and soybeans and easing auto safety rules, but differences remain, particularly regarding tariffs, with Japan carefully navigating to avoid upsetting their economy.
