Japanese Prime Minister Shigeru Ishiba has stated that his country will emphasize “fairness” in any discussions with the US President Donald Trump’s administration regarding exchange rates, as bilateral trade talks gain global attention amidst Washington’s tariff offensive.
Ishiba, during a talk show on public broadcaster NHK, indicated that Tokyo could increase its purchases of US energy and suggested flexibility on US accusations of non-tariff barriers to the Japanese automobile market.
Trump, who unexpectedly joined the first round of US-Japan talks on Wednesday and touted “significant progress,” has indicated that he wants the negotiations to include his accusations that Tokyo intentionally weakens its currency to give its exporters an unfair advantage.
Ishiba said that specific discussions on currency policy will be conducted between Finance Minister Katsunobu Kato and Treasury Secretary Scott Bessent.
“We’ll have to address this issue from the perspective of fairness,” Ishiba said when asked how Japan would respond if the US requested cooperation in boosting the yen. He did not elaborate.
Japan, which denies manipulating the yen, has historically sought to prevent a strong yen from harming its export-dependent economy, but it intervened in the foreign exchange market last year to strengthen its currency.
Kato plans to visit Washington this week for a meeting of the Group of 20 finance chiefs on the sidelines of the International Monetary Fund (IMF) spring meeting. He is widely expected to meet Bessent for bilateral trade talks.
Some analysts suggest that Japan could leverage its substantial US Treasury holdings—the largest in the world at over $1 trillion—as a bargaining tool, but Kato ruled out using them as such this month.
“This is based on trust between the two sides, global economic stability, as well as the economic stability of both countries,” Ishiba said when asked whether Japan would reference its US debt holdings during the talks.
Trump has imposed 24% tariffs on Japanese exports to the US, although, like most of Trump’s levies, they have been paused until early July. A 10% universal rate remains in effect, as does a 25% duty on cars, a crucial component of Japan’s export-reliant economy.
Nikkei Asia reported on Sunday that Japan is considering easing auto safety regulations for imports as part of its tariff negotiations with the US. Washington has long complained that Japanese safety rules constitute a non-tariff barrier, while Japan and many experts argue that Detroit automakers do not produce cars suitable for Japan’s roads and drivers.
Asked about these accusations, Ishiba stated that there are differences in US and Japanese traffic and safety regulations that need to be considered. “However, we also need to ensure we are not told that our (safety) rules are unfair.”
He signaled a willingness to pledge increased Japanese investment in the US, particularly in the energy sector.
“Regarding liquefied natural gas, Australia is the largest exporter to Japan. I believe the US is in fourth place. It is possible that this could increase. The question is whether the US can deliver [energy] stably,” he said.
