Japan's Finance Minister Katsunobu Kato has expressed significant concern regarding the potential global economic repercussions of U.S. President Donald Trump's trade tariffs.

He warned that these tariffs could place downward pressure on Japan's economy, marking his first public remarks following Trump's announcement of reciprocal tariffs earlier this month.

Kato highlighted that the recent tariff measures could negatively impact various industries and contribute to economic uncertainty both in Japan and worldwide.

His comments were made during an interview in Tokyo, coinciding with the start of trade talks in Washington amid increasing market volatility.

In response to the market fluctuations, Kato emphasized the necessity for Japan and the U.S. to maintain close communication regarding currency matters.

While he did not elaborate on potential discussions about foreign exchange at his upcoming meeting, Kato reiterated Japan's position against allegations of currency manipulation.

He stressed the importance of actively exchanging views with the U.S. on their fundamental approach to foreign exchange issues.

Kato is scheduled to travel to Washington next week for meetings with the International Monetary Fund and the Group of 20, along with a separate meeting with U.S. Treasury Secretary Scott Bessent.

However, he refrained from commenting on any discussions regarding foreign exchange that may take place during his meeting with Bessent.

This diplomatic engagement comes amid accusations from Trump's trade agenda, which claims Japan is weakening the yen to benefit its exporters.

As of the latest market update, the USD/JPY exchange rate was trading at 142.75, reflecting a 0.61% increase for the day.

Kato's remarks underscore the critical need for stable currency rates and a mutual agreement between Japan and the U.S. to combat excessive volatility.