Treasury Secretary Scott Bessent stated on Wednesday that the U.S. does not have “any exchange rate objectives whatsoever” in its trade talks with Japan. This comes as both nations seek common ground after President Donald Trump imposed strict tariffs on imported goods.
Bessent’s statement, making it clear that the Trump administration will not pursue specific foreign exchange rates in the talks, came a day ahead of an expected meeting with Japanese Finance Minister Katsunobu Kato in Washington, with currency policy likely to top the agenda.
This session forms part of the official bilateral tariff talks which began the previous week. There was considerable speculation leading up to the event suggesting that Bessent might address exchange rate issues during his discussion with Kato on Thursday. This follows President Trump’s claims that Japan manipulates its currency values and fosters a trade surplus with the U.S.
The Japanese authorities have rejected the assertion as unfounded and stated their dedication to the longstanding commitment of the G7 group, which asserts that currency values should be based on economic realities.
Bessent also stated on Wednesday that the U.S. anticipates Japan will uphold the G7 accord, further noting, “I have reiterated this point multiple times… we are considering various elements.”
To decrease the U.S. trade deficit, he stated that the Trump administration considers addressing tariffs, non-tariff trade impediments, currency manipulation, and governmental subsidies to be crucial priorities.
