Japan-US Trade Talks: Currency Controversy Omitted

Japanese Finance Minister Katsunobu Kato clarified that the trade agreement with the U.S. does not address foreign exchange rates. The talks on currency issues between Japan and the U.S., led by Kato and U.S. Treasury Secretary Scott Bessent, remain separate from the main trade discussions.

Japanese Finance Minister Katsunobu Kato announced that the newly inked trade deal between Japan and the United States does not touch upon foreign exchange rates, according to the Kyodo news agency. This comment was made during a press briefing at Japan's Ministry of Finance.

The omission is significant considering President Donald Trump’s persistent emphasis on correcting the U.S. trade imbalance and past assertions accusing Japan of keeping the yen weak on purpose. Such accusations have raised expectations of pressure on Tokyo to let the yen appreciate, providing an edge to U.S. manufacturers in the global market.

Kato and U.S. Treasury Secretary Scott Bessent have engaged in dialogues focusing on exchange rates. However, these discussions have been classified as separate from the broader negotiations concerning tariffs and trade between the two nations.