Japan Worries About Economic Impact of U.S. Trade Tariffs

Japan’s Finance Minister Katsunobu Kato expressed deep worries about U.S. President Donald Trump’s trade tariffs, warning that they could cause problems in global markets and Japan’s economic recovery. Speaking to Reuters, Kato pointed out the dangers of tariffs and market volatility, and the need for stable exchange rates that are in line with economic fundamentals. He stressed that erratic currency shifts are bad and called for strong dialogue with the U.S. to mitigate the adverse effects. Trump’s claims that Japan is manipulating the yen were rejected by Kato, who stated that Japan does not intentionally manipulate the currency, and that Japan is committed to policy coordination. He said he is willing to work with other countries and the U.S. to address these challenges, in order to promote mutual economic stability and reduce the impact of the tariffs on Japan’s growth path.