Overview

• Finance Minister Katsunobu Kato issued Japan's strongest warning yet about the potential global and domestic economic fallout from U.S. tariffs under President Trump.
• Face-to-face trade negotiations between Japan and the U.S. have begun in Washington, with a second meeting scheduled for later this month.
• Japan's Cabinet Office reported moderate economic recovery but flagged increasing downside risks stemming from U.S. trade policies and market instability.
• Corporate sentiment in Japan has weakened, with the government cutting its outlook for the first time in three years following a Bank of Japan survey showing declining business confidence.
• Japanese officials reiterated their stance against currency manipulation, emphasizing stable exchange rates based on economic fundamentals and deferring currency discussions to finance leaders.