Japan Taps Economy Minister Akazawa for Key U.S. Trade Talks

By Leika Kihara and Makiko Yamazaki

TOKYO () – Japan’s Economy Minister Ryosei Akazawa has been named as the country’s lead trade negotiator for discussions with the United States, according to an announcement made by the government's chief spokesperson on Tuesday.

Chief Cabinet Secretary Yoshimasa Hayashi stated at a press briefing that bilateral talks regarding adjustments in exchange rates will continue to be overseen by Japan’s finance minister and the U.S. treasury secretary.

The Japanese Prime Minister, Shigeru Ishiba, is contemplating another trip to the United States for conversations with U.S. President Donald Trump at what he deems as the optimal time. According to Hayashi, this decision hinges significantly on advancements made during meetings between high-ranking officials from both countries.

Ishiba’s appointment followed a phone call between the Japanese premier and Trump, where they concurred to start bi-lateral talks regarding tariffs on Monday.

Trump has designated Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to oversee trade negotiations with Japan, Bessent said on social media.

"The appointment of the treasury secretary to handle trade discussions with Japan might indicate that the U.S. administration has significant interest in sectors under his jurisdiction," Akazawa stated at a press briefing on Tuesday.

Bessent's appointment as the head of U.S. trade talks with Japan has heightened speculation among some investors that Washington may pressure Tokyo to help weaken the dollar against the yen, as part of a deal to reduce U.S. tariffs on Japan.

A depreciated US dollar has the potential to boost American exports, whereas an appreciating yen could assist in curbing increasing import expenses that have impacted Japanese consumers, according to several experts.

"Trump's pressure, along with the Japanese government’s aim to strengthen the yen relative to the dollar, might affect the probability of additional interest rate increases by the Bank of Japan," noted Yasunari Ueno, the chief market economist at Mizuho Securities, in a research report.

In January, the BOJ increased interest rates to 0.5%, and its representatives have indicated they are prepared to raise them even more if Japan advances towards consistently meeting its 2% inflation objective, or if there’s a danger of inflation becoming too high.

(Reported by Leika Kihara and Makiko Yamazaki; Edited by Himani Sarkar and Jacqueline Wong)