Japan Warns of Global Economic Risks from U.S. Tariffs Amid Trade Talks

Japan’s Finance Minister Katsunobu Kato expressed deep concern over the global economic impact of U.S. President Donald Trump’s trade tariffs, warning they could hurt Japan’s recovery and create global market instability. In an interview with Reuters, Kato said the recent U.S. tariff measures, announced April 2, increase uncertainty and could pressure Japan’s economy via trade and financial channels. He added that currency market volatility remains a key concern.

The comments come as Japan and the U.S. begin high-stakes trade negotiations. Kato will travel to Washington next week for the IMF and G20 meetings and plans to meet U.S. Treasury Secretary Scott Bessent to continue discussions started by Japan’s top negotiator Ryosei Akazawa, which Trump unexpectedly joined. Kato reiterated Japan’s commitment to stable currency markets and said Tokyo would maintain close communication with Washington to avoid disorderly exchange rate moves.

While Trump has criticized Japan for allegedly weakening the yen and not contributing enough to U.S. military costs, Japanese officials denied any currency manipulation. Akazawa confirmed that currency issues were deferred to finance chiefs and did not surface during the initial talks.

Some analysts warn that the Trump administration may target the Bank of Japan’s long-standing monetary easing, which contributed to yen weakness. Kato emphasized that monetary policy remains under BOJ authority but confirmed the government will stay in close dialogue with the central bank.

Highlighting Japan’s reliance on global trade, Kato said Tokyo aims to show how it can help address the U.S. trade deficit and revive its manufacturing sector. He urged policymakers on both sides to find a balanced approach that serves national interests while supporting global economic stability.