AsianFin -- U.S. President Donald Trump said Monday that he has warned the leaders of Japan and China that they cannot continue devaluing their currencies, calling the practice unfair to the United States.
"I've called President Xi, I've called the leaders of Japan to say you can't continue to reduce and break down your currency," Trump stated at the White House.
"You can't do it because it's unfair to us. It’s very hard for us to make tractors, Caterpillar here, when Japan, China, and other places are killing their currency—meaning driving it down," he added.
Rather than repeatedly voicing concerns over the phone, Trump suggested the U.S. could counteract the impact on its manufacturers by imposing tariffs.
"So all of these things add up. And the way you solve it very easily is with tariffs," he said.
Following Trump’s remarks, Japan’s Nikkei share average fell more than 1% on Tuesday as the yen briefly surged to 149.11 per dollar, its strongest level since February 28. The market reaction underscored concerns over Washington’s stance on currency and trade policies.
When asked about Trump’s comments, Japanese Finance Minister Katsunobu Kato denied that Tokyo was pursuing policies aimed at weakening the yen.
"Japan has confirmed its basic stance on currency policy" with G7 nations and in bilateral talks with U.S. Treasury Secretary Scott Bessent on January 29, Kato said at a news conference in Tokyo on Tuesday.
Explore more exclusive insights at nextfin.ai.
