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Home World News Asia

Japan rejects Trump’s accusation of devaluing yen amid tariff threat

March 4, 2025
in Asia
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Japan rejects Trump’s accusation of devaluing yen amid tariff threat
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Japan has denied an accusation by US President Donald Trump that it is manipulating the yen to benefit local manufacturers after the American leader suggested he is planning to impose retaliatory tariffs if his demands are not met.

Speaking to reporters in the White House on Monday night, Trump singled out Japan and China for criticism.

“Whether it is Japan or China, the weak currency against the dollar puts us at a great disadvantage,” Trump said. “It is hard for [US equipment manufacturer] Caterpillar to make tractors when Japan and China are devaluing their currencies.

“I used to call the leaders of Japan and China and tell them, ‘We cannot continue to unfairly devalue our currencies’. But all I have to do is tell them, ‘We need to raise tariffs a little’.”

Tokyo’s currency came in for criticism on the same day that Trump confirmed tariffs of 25 per cent would go into effect on Tuesday against imports from Canada and Mexico, with China also facing additional tariffs of 10 per cent.

Speaking in Tokyo on Tuesday morning, Finance Minister Katsunobu Kato said: “Japan is not pursuing a policy of currency depreciation. As I have said before, Japan is not taking measures to devalue the currency and, if you look at recent foreign exchange interventions, you will understand that.”

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