U.S. not eyeing specific currency rates in Japan tariff talks: Bessent

The United States has “absolutely no currency targets” in its trade negotiations with Japan, Treasury Secretary Scott Bessent said Wednesday, as the two countries aim to find some middle ground following President Donald Trump’s imposition of severe tariffs on imports.

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.

The meeting is part of the bilateral tariff negotiations that formally kicked off last week. Speculation had been rife that Bessent would bring up exchange rates for discussions with Kato on Thursday, given that Trump has accused Japan of devaluing its currency and purposely creating a trade surplus with the United States.

The Japanese government has dismissed the claim as untrue and said it is committed to the Group of Seven’s longtime agreement that currencies should reflect economic fundamentals.

Bessent also said Wednesday that the United States is expecting Japan to honor the G7 agreement, adding, “As I’ve mentioned several times…we are looking at multiple factors.”

In an attempt to reduce the U.S. trade deficit, he said the Trump administration believes tariffs, nontariff trade barriers, currency manipulation and government subsidies should be addressed as a matter of importance.