• Japan stresses "fairness" in currency discussions with the U.S., according to Prime Minister Ishiba.
• Tokyo may consider relaxing automobile safety standards as part of tariff negotiations.
• Current tariffs include a 25% duty on Japanese cars entering the U.S. market.
• Ishiba confirms Japan's commitment to its 2019 trade deal with the U.S. amidst tariff inconsistencies.
• Finance Minister Katsunobu Kato is set to meet with U.S. Treasury Secretary Scott Bessent to discuss exchange rates.

In recent negotiations regarding trade talks with the U.S., Japan's Prime Minister Shigeru Ishiba emphasized the importance of "fairness" in any discussions about currency exchange rates. This statement comes amid growing tensions as U.S. President Donald Trump seeks to address tariffs and introduce new trade regulations. Ishiba noted that the discussions on currency policy will specifically involve Japan's Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent, stating, "We'll have to deal with this issue from the standpoint of fairness," according to Reuters.

Responding to Trump’s concerns regarding the entry of American cars into the Japanese market, Ishiba suggested that Japan may consider modifying its automobile safety standards as part of the ongoing tariff negotiations. Trump has previously accused Japan of promoting non-tariff barriers to U.S. automakers, leading to discussions surrounding potential changes to Japan's crash test requirements. "America's cars are underperforming in the Japanese market," Trump remarked during meetings, highlighting the significance of this issue for both nations, reports AA.

The current tariff situation imposes a 25% duty on automobile imports from Japan, a critical sector of its export-driven economy. Despite an ongoing pause on many of Trump's tariffs until July, Japan remains concerned about the implications of ongoing tariffs, particularly given the previously established 2019 trade deal which aimed to eliminate trade hurdles. Ishiba articulated Japan's "grave concern" over the inconsistency between the existing tariff structure and the stipulations of the bilateral trade agreement, according to Channel News Asia.

Ishiba further assured that Japan does not intend to terminate their 2019 trade agreement despite the pressures being exerted by the U.S. regarding additional tariffs. The Japanese government plans to communicate its concerns regarding the recent tariffs to the U.S., reaffirming their commitment to a fair trade relationship as negotiations progress. As part of these discussions, Finance Minister Kato is set to visit Washington for talks on currency rates, reflecting the significant economic interdependence between the two countries, as reported by Channel News Asia.