Japanese Prime Minister Shigeru Ishiba is expected to nominate Economy Minister Ryosei Akazawa as the country’s lead trade negotiator with the United States, according to FNN television. However, Akazawa said during a press conference that he had not been contacted by the prime minister and was unaware of the report.
The speculation follows a phone call between Ishiba and U.S. President Donald Trump, in which both leaders agreed to begin bilateral trade discussions focused on tariffs. On the U.S. side, Trump appointed Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer to lead the negotiations, Bessent confirmed via social media.
Akazawa noted that the U.S. Treasury Secretary’s involvement signals Washington's strong interest in economic policy areas, including currency. Meanwhile, Japan’s Finance Minister Katsunobu Kato clarified that exchange-rate issues would continue to be managed by finance ministers from both nations.
Bessent’s appointment has sparked speculation among investors that the U.S. may pressure Japan to allow the yen to strengthen, thereby weakening the dollar to boost U.S. exports. A stronger yen could also help ease Japan’s rising import costs, according to analysts.
Yasunari Ueno of Mizuho Securities suggested that potential U.S. pressure and Japan's aim to stabilize the yen could influence future rate hikes by the Bank of Japan (BOJ). The BOJ raised interest rates to 0.5% in January and may tighten policy further if inflation trends remain elevated.
At a ministerial meeting on U.S. tariffs, Ishiba emphasized the need to closely monitor investor sentiment due to ongoing global financial volatility. Akazawa, when asked about the yen's rebound, refrained from commenting but acknowledged that a stronger yen typically lowers import costs.