Bessent Rules Out Currency Targets in Japan Tariff Negotiations
U.S. Rules Out Currency Targets in Japan Tariff Talks, Says Treasury Secretary Bessent
U.S. Treasury Secretary Scott Bessent stated Wednesday that Washington has "no currency targets" in its ongoing tariff negotiations with Japan, despite repeated calls by former President Donald Trump for a stronger yen.
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Japanese media reported that a second round of talks is scheduled for May 1 in Washington, a key meeting that could signal how the U.S. handles tariff relief for other nations.
Bessent said the U.S. is addressing a range of trade issues, including tariffs, non-tariff barriers, currency manipulation, and government subsidies, but emphasized that “there are absolutely no currency targets.”
Japanese Finance Minister Katsunobu Kato signaled readiness to discuss exchange rates in more detail with Bessent during a meeting set for Thursday on the sidelines of an IMF conference in Washington.
The yen has strengthened significantly since Trump’s tariffs were announced, recently trading around 158 to the dollar. A weaker yen benefits Japanese exports, while a stronger dollar puts U.S. exports at a disadvantage.
Japan, a key U.S. ally and the world’s fourth-largest economy, faces a 10% baseline tariff similar to most countries, in addition to higher duties on cars, steel, and aluminum. Trump also imposed a 24% “reciprocal” tariff on Japan, though it has been temporarily paused for 90 days—except for China.
Japan’s envoy Ryosei Akazawa met with Trump and top U.S. officials last week, with reports suggesting he’ll return for further talks on May 1.
Citing unnamed sources, Japanese broadcaster NHK reported that U.S. negotiators indicated no exceptions will be made for Japan. However, Tokyo is reportedly exploring possible concessions, such as increasing imports of American rice and soybeans and easing auto safety regulations.
