Japan’s Kato Plans G7 Talks With U.S. Treasury on Forex and Tariffs

Japanese Finance Minister Katsunobu Kato announced plans to meet with U.S. Treasury Secretary Scott Bessent next week on the sidelines of the upcoming G7 finance ministers’ meeting in Canada. The goal is to continue ongoing discussions on foreign exchange issues and possibly address U.S. tariff policies.

Speaking at a regular press conference on Tuesday, Kato said, “I’m making preparations to attend the meetings of finance leaders from the G7 in Canada next week. If circumstances allow, I’d like to use this opportunity to have a meeting with Treasury Secretary Scott Bessent and continue to discuss foreign exchange.”

The potential meeting follows a prior discussion between Kato and Bessent on April 24 in Washington, where both sides committed to maintaining “constructive” dialogue on currency matters. However, that meeting did not result in any agreements on setting specific currency targets or frameworks to stabilize the Japanese yen.

As the yen continues to face pressure in global markets, Japan’s finance ministry remains focused on strengthening cooperation with key international partners. The upcoming G7 meetings will provide a critical platform for policy coordination among major economies, especially amid persistent concerns about currency volatility and the impact of U.S. trade measures.

Kato noted that if the bilateral meeting with Bessent takes place, U.S. tariffs may also be on the agenda, signaling a broader scope of economic discussions between the two nations.

The G7 gathering is expected to feature top finance officials from the U.S., Japan, Canada, Germany, France, Italy, and the United Kingdom, as they address global economic challenges and coordinate fiscal and monetary strategies.