Japanese Prime Minister Shigeru Ishiba has underscored the importance of fairness in upcoming currency discussions with the United States, as tensions continue to simmer over tariffs and trade terms. Speaking during a talk show on national broadcaster NHK, Ishiba said Tokyo will approach any talks on exchange rates from the standpoint of fairness, particularly in light of Washington’s accusations that Japan has intentionally weakened the yen to benefit its exporters.
The currency negotiations will be handled by Japan’s Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent. These discussions are expected to take place on the sidelines of the upcoming Group of 20 finance ministers’ meeting in Washington. Ishiba did not provide specific details on how Japan would respond if asked to support a stronger yen but reaffirmed that the country does not engage in currency manipulation.
As part of broader trade talks, Ishiba indicated that Japan could increase imports of U.S. liquefied natural gas, noting that the United States currently ranks fourth among Japan’s energy suppliers. He said any increase would depend on Washington’s ability to provide a stable supply. The Prime Minister also signalled potential flexibility on U.S. complaints about non-tariff barriers, particularly in the automotive sector. Washington has long argued that Japan’s auto safety standards hinder U.S. car imports, while Japan maintains that American cars are not tailored to local roads and driving habits.
On the issue of tariffs, Ishiba noted that President Donald Trump has imposed a 10 per cent universal tariff and a 25 per cent levy on Japanese cars. A proposed 24 per cent tariff hike has been paused until July. Amid speculation that Japan could use its holdings of over US$1 trillion in U.S. Treasury bonds as leverage in trade talks, Ishiba dismissed the idea, stressing that such financial instruments are based on mutual trust and global economic stability.
Looking ahead, Japan may consider relaxing certain automotive regulations to ease U.S. concerns, but Ishiba was clear that any adjustments must not compromise domestic safety standards. At the same time, he expressed a willingness to increase Japanese investment in the U.S., particularly in energy-related sectors.–REUTERS
