Japan Warns U.S. Against Manipulating Currency Talks, Ishiba Stresses Fairness
Japan issued a firm warning to the United States on Sunday, making it clear that any manipulation during upcoming currency discussions will be exposed. Prime Minister Shigeru Ishiba, speaking live on NHK, emphasized that Japan is committed to ensuring “fairness” in every aspect of the exchange rate negotiations. This comes as President Trump continues ramping up tariffs on key U.S. trade partners.
The warning followed Trump’s surprise appearance at the first round of U.S.-Japan trade talks, where he claimed “big progress” had been made. However, behind closed doors, Trump is reportedly pressing Tokyo to stop what he views as intentional devaluation of the yen to benefit Japanese exporters.
Ishiba clarified that currency negotiations will be handled by Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent, not by the leaders themselves. Still, he didn’t shy away from the issue. Asked if Japan would support a stronger yen, Ishiba responded, “We’ll have to deal with this issue from the standpoint of fairness,” without outlining Japan’s exact approach.
Tariffs, Auto Rules, and Energy on the Agenda
Ishiba also touched on key trade friction points, including energy imports, auto regulations, and Japan’s significant holdings of U.S. debt.
The Trump administration has imposed 24% tariffs on Japanese goods entering the U.S., though those are temporarily paused until July. A 10% base tariff remains, alongside active 25% duties on automobiles—impacting a major pillar of Japan’s export economy.
While defending Japan’s vehicle safety standards, Ishiba hinted at possible reforms. “There are differences in U.S. and Japanese traffic and safety rules that must be taken into account,” he said, adding that Japan wants to ensure its regulations aren’t unfairly portrayed. This follows a Nikkei Asia report suggesting Japan might ease some auto safety requirements as part of the negotiations.
Energy and Economic Leverage
Ishiba also noted Japan might consider increasing imports of U.S. liquefied natural gas (LNG)—but only if Washington can guarantee consistent delivery. “Australia is our largest LNG supplier. The U.S. ranks fourth. We could increase imports, but only if the U.S. proves it can supply energy reliably,” he said.
As for Japan’s $1 trillion in U.S. Treasury holdings—the largest globally—Ishiba reiterated Tokyo’s position that it won’t use this as a bargaining chip. “Our holdings are based on mutual trust and contribute to global and bilateral economic stability,” he stated, echoing earlier comments from Finance Minister Kato.
Kato is set to travel to Washington this week for the G20 finance ministers’ meeting, which will coincide with the IMF spring summit. All eyes are on his upcoming meeting with Treasury Secretary Bessent, where they’re expected to tackle critical issues including currency policy, tariffs, LNG, and au
tomotive regulations.
