Japanese Finance Minister Katsunobu Kato mentioned that trade discussions with the United States might involve talks about foreign exchange rates. According to Kato, there has been communication, including on exchange rates, from the U.S. side, indicating that currency fluctuations could be a topic of conversation. However, specific details have not been determined yet. Kato also stated that any talks on exchange rates would be held between the finance ministers of both countries.

It is anticipated that Kato will travel to Washington later this month for the G20 finance leaders' meeting during the International Monetary Fund spring meetings, providing an opportunity for him to have his first in-person meeting with U.S. Treasury Secretary Scott Bessent. Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump agreed during a phone call on Monday to begin bilateral discussions on tariffs.

Although Economy Minister Ryosei Akazawa has been designated as the trade negotiator for Japan, Kato is likely to have a significant role in the discussions with the United States as his ministry oversees the nation's exchange-rate policy. Trump has assigned U.S. Treasury Secretary Bessent and U.S. Trade Representative Jamieson Greer to lead the trade negotiations with Japan.