Japan is reportedly asking the US what it wants in trade talks and can't get an answer
Japan will stress the importance of "fairness" in any talks with the United States on exchange rates, Prime Minister Shigeru Ishiba said Sunday, as bilateral trade negotiations draw global attention amid President Donald Trump's tariff campaign.
Speaking on public broadcaster NHK, Ishiba suggested Tokyo could increase purchases of U.S. energy and showed some openness to addressing U.S. claims of non-tariff barriers in Japan’s auto market.
Trump, who made a surprise appearance during the first round of U.S.-Japan talks last Wednesday and claimed “big progress,” has pushed for the discussions to include his concerns that Tokyo weakens the yen to benefit Japanese exporters.
Ishiba noted that discussions on currency policy would be handled by Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent.
“We’ll have to approach this issue from a standpoint of fairness,” Ishiba said, in response to a question about how Japan would respond if the U.S. pushed for a stronger yen. He did not provide further details.
Japan, which denies manipulating its currency, has typically worked to prevent a strong yen from harming its export-driven economy. However, it did intervene in the foreign exchange markets last year to support the yen.
Kato is set to travel to Washington this week for a Group of 20 finance ministers meeting on the sidelines of the IMF spring meetings. He is expected to meet with Bessent for bilateral trade discussions.
Possible Boost in U.S. Energy Imports
Some analysts believe Japan’s large holdings of U.S. Treasuries — the largest in the world at over $1 trillion — could be used as trade leverage. But Kato has already dismissed the idea of using those holdings as a negotiating tool.
“This relationship is based on trust, global economic stability, and the economic stability of both countries,” Ishiba said when asked whether Japan might bring up its U.S. debt holdings during the talks.
Trump has imposed 24% tariffs on Japanese exports to the U.S., although most of these duties have been suspended until early July. A 10% baseline tariff remains in effect, along with a 25% tariff on cars — a major export for Japan.
Nikkei Asia reported Sunday that Japan is considering easing auto safety regulations on imports as part of its negotiations with the U.S. Washington has long argued that Japan’s auto safety rules act as non-tariff barriers, while Japan and many experts say U.S. carmakers simply don’t build vehicles suited to Japan’s roads and drivers.
Asked about such concerns, Ishiba acknowledged that there are key differences between U.S. and Japanese traffic and safety standards. “But we also need to ensure we’re not accused of having unfair [safety] regulations,” he said.
He also expressed a willingness to expand Japanese investment in the United States, particularly in the energy sector.