Japan is taking a firm stance on trade negotiations with the United States, showing little willingness to make sweeping concessions. Any compromise, officials suggest, will be modest at best.
The Japanese government is in no rush to reach a deal in ongoing talks over tariffs with President Donald Trump's administration. "We do not intend to make one compromise after another just to conclude negotiations quickly," Japanese Prime Minister Shigeru Ishiba said. His position signals a strategic pause rather than panic.
At the same time, Japan has no plans to impose retaliatory tariffs on US imports. Instead, Tokyo is hoping for constructive dialogue, suggesting that common sense will prevail. "In negotiating with the United States, we need to understand what's behind Trump's argument both in terms of the logic and the emotional elements behind his views," Ishiba added.
Beyond tariffs, the two sides are expected to discuss currency movements, a topic fraught with complications. Any notable change in the yen's trajectory would have a direct impact on monetary policy decisions, particularly the Bank of Japan's timing and scope for future interest rate hikes.
Japanese officials have long sought to avoid excessive yen appreciation, which could hurt the country's export-driven economy. Still, a weaker yen is not the preferred outcome either. Analysts warn that the currency's depreciation in recent years has become a headache for policymakers, driving up import costs and weighing on consumer spending.
