Masatsugu Asakawa, former top currency diplomat of Japan and current ADB President, stated this week that despite President Donald Trump’s criticism of Japan’s trade surplus, the U.S. is unlikely to apply direct pressure on Japan to strengthen the yen.
Asakawa ruled out the possibility of a coordinated currency agreement similar to the 1985 Plaza Accord, citing a lack of global consensus on such interventions. He also noted that U.S. Treasury Secretary Scott Bessent has so far avoided pushing Japan on currency matters, consistent with a long-standing position of leaving exchange rate issues to finance ministers and market forces.
During recent U.S.-Japan trade talks, Washington refrained from making the yen a focal point, reflecting this tradition of non-interventionist currency diplomacy.
Although the U.S. dollar has weakened by 7.5% against the yen in 2025, Asakawa believes Japan will likely focus on offering a package of economic incentives—including increased U.S. investment opportunities and expanded LNG cooperation—to reduce the risk of steep tariffs.
Trump’s upcoming August 1 tariff deadline, which includes a proposed 25% levy on Japanese goods, remains a key source of uncertainty in bilateral trade relations going forward.