Treasury Secretary Scott Bessent says the US does not have specific currency targets in mind in trade talks with Japan. His comment in media reports come amid speculation Washington was pressuring Tokyo to allow the yen to strengthen against the dollar to aid US exporters. Reuters and Bloomberg reported Bessent's comments in Washington on Wednesday. They added that the Treasury Secretary said the US expects Japan to honor the G7 agreement. This is an apparent reference to a G7 commitment to allow markets to determine currency rates.
President Donald Trump, in comments on the US trade deficit, had said the yen was too weak against the dollar.
Finance Minister Kato Katsunobu is expected to hold talks with Bessent in Washington as early as Thursday.
The yen moved lower against the dollar on Thursday in Tokyo. It briefly weakened to the 143-yen level in morning trading.
On a possible timetable for reducing or removing tariffs, Trump has suggested China needs to make a fair deal if it wants the US to take action.
Trump on Wednesday addressed a reporter's question asking how quickly he wants to reduce the tariffs on China. Media reports have suggested he's considering a significant reduction.
Well, that depends on them. We have a situation where we have a very, very great place. It's called the United States of America, and it's been ripped off for years and years.
New levies on Chinese goods have reached 145%.
Referring to the figure on Tuesday, Trump said 145 percent is very high and won't be that high, adding that they will come down substantially, but it won't be zero.
I think what's going to happen is we're going to have great deals. And by the way, if we don't have a deal with a company or a country, we're going to set the tariff.
Trump also said his administration will set the tariffs over the next couple of weeks.
China has strongly condemned recent US trade practices at the United Nations Security Council. It says they are disrupting the global order.
An informal UN Security Council meeting was held on Wednesday at China's request to discuss the American imposition of tariffs.
This severely infringes upon the legitimate rights and interests of all countries, severely violates the WTO rules, severely undermines the rule-based multilateral trading system, and severely disrupts the global economic order.
Washington shot back. A US representative called the meeting performative and devoid of any substance or credibility.
China claims to be a developing country, while it simultaneously weaponizes its donor status and development projects to bully developing member states. No more.
President Trump is resetting the trade environment so that China can no longer take advantage.
Delegates from the Security Council's permanent and non-permanent members, as well as 15 other nations, took part in the meeting. Japan did not participate. Iran and Cuba were among those expressing support for China. Some countries, including Britain and South Korea, argued that tariffs should be discussed at other institutions, such as the World Trade Organization.
The US Central Bank says the country's tariff policy is casting a shadow over the American economy. So let's hear more from our business team, Gene Ohtani. So Gene, fill us in.
We're getting some more information on this, Erica.
The latest report by the US Federal Reserve indicates that the Trump administration's tariff measures are already beginning to have a significant impact. It says the economic outlook in the Fed's districts worsened considerably as uncertainty surrounding tariffs rose.
The central bank on Wednesday released its April Beige Book based on information, including interviews with businesses from its 12 districts across the US Most districts noted that firms expected a rise in costs resulting from the higher tariffs, and many have already received notices from suppliers saying their prices would be increasing. The Fed says most businesses expected to pass on that additional expense to customers, but there were reports about reduced margins as demand remained weak in some sectors, especially for firms that sell to consumers. The Beige Book says overall activity was little changed since the February report showed it rising slightly.
Japan is facing tough negotiations with the US over Trump's tariffs. Government sources say Washington insists it can't offer Tokyo special treatment. In the first round of talks last week, Japan's top negotiator Akazawa Yosei urged the US to review its levies on automobiles, steel and other items. But his plea reportedly got a cool reception. Akazawa told reporters on Wednesday Tokyo should quickly decide what points it will focus on.
The first round of talks gave us a sense of Washington's interests and priorities.
Prime Minister Ishiba Shigeru said the fact that Trump met with Akazawa face to face shows he views Japan with great importance.
We need you to talk about how Japan and the US can jointly bring about global benefits.
Akazawa is expected to urge Washington to discuss tariff cuts during the next round of meetings. He's seeking talks with his US counterpart, Treasury Secretary Scott Bessent on May 1.
Toyota Motor says it will make further investments to expand production at its plant in the US state of West Virginia. The decision by Japan's biggest automaker comes amid efforts by the Trump administration to attract more spending on manufacturing in the US.
Toyota says it will allocate $88 million to build a production line for hybrid vehicle components at the facility. It is expected to be up and running in late 2026.
The factory currently produces vehicle engines, transmissions and other parts. The additional spending will bring Toyota's total investment in the plant to more than $2.8 billion. Toyota says that as part of the US business community, it will continue to contribute through providing jobs and investment.
Finance ministers and central bank governors from the Group of 20 economies have kicked off their two-day meeting in Washington. One big focus is whether they can show a united front against Trump's tariff policies.
Japan sent Finance Minister Kato Katsunobu and Bank of Japan Governor Ueda Kazuo. Participants exchanged opinions on the global economy and financial markets at the meeting, which started on Wednesday. G20 members shared the view that free trade spurs economic growth. But concerns are growing that Trump's tariffs could destabilize the system. And trade friction between the world's two largest economies, the US and China, is another worry. Stock and foreign exchange markets around the world remain volatile.
Kato spoke to reporters after the first day of the meeting. He said Japan had pointed out that US trade policies and retaliatory measures by some countries have caused uncertainty.
In order to maintain the stability of the global economy and financial markets, I urged countries to take the necessary actions, including keeping a close watch on the development, sharing information and cooperating flexibly, Kato said. Countries need constructive policy dialogues to promote free and open multilateral trade and correct inequalities and imbalances between and within them.
All right, let's have a look at the markets.
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And that's a look at business news. Erika, I'm going to hand it back to you.
Next. The auto sector has been a focal point in the tariff negotiations. Trump criticized how few American cars are on Japanese roads, citing safety standards. But some say that's not the only issue.
This company, north of Tokyo, specializes in imported cars. It brings in around 100 American vehicles every year.
Because the safety standards are different, the cars need to be retrofitted before they're sold. For example, the blinkers need to be orange.
Cars in Japan also undergo different safety tests. This one evaluates the impact an accident could have on a pedestrian, specifically their head. Over 61 countries and territories have a similar test.
But the US is in one of them. As a result, some American cars need to have their parts remodeled.
Although it looks simple, remodeling work takes time and labor.
But that's not the only reason American cars aren't popular. One expert says US automakers have failed to meet the needs of the Japanese market.
Many US cars are bulky, and are not fit for Japanese roads. Poor fuel efficiency is also a major factor.
It makes the vehicles unappealing to drivers who want to be able to drive in their own neighborhoods. Some brands have already pivoted their approach. If you look at imported car brands by sales, Jeep is the only American brand in the top 10. The cars are tailored to Japan's knees before being shipped over.
As a result, customers don't have to deal with retrofitting. They only need to register the car before hitting the road. Some models are also smaller than their American counterparts, making them easier to drive in Japan.
Large cars aren't ideal when there are other vehicles, bikes, and pedestrians sharing the road. We sell American cars to Japanese customers who want a safer version of the US models.
For more on this, earlier I spoke with NHK World's Yoshikawa Ryuichi. He's been looking into the situation on Japan's roads.
Trump claims Japan doesn't buy enough American cars. So what are the numbers?
Right. The Japan Automobile Importers Association says about 230,000 foreign cars were imported and sold last year. But that's cars from around the world.
If you only talk about cars from America, American cars only accounted for 16,000 units. Most imported car sales come from German brands. As you can see, Mercedes-Benz sold the most, topping 53,000 units, and BMW and Volkswagen were close behind. As we mentioned earlier, Jeep is the best-selling US brand among foreign automakers. It's ranked seventh, with around 9,000 vehicles sold.
As for other US companies, like Chevrolet, Kellogg, and Ford,They each sold a couple 100 units each. Overall, they're a small percentage of the Japanese market.
But that wasn't always the case. Back in 1995, US cars were about 40 percent of all imported car sales in Japan.
But 30 years later, that's down to less than 5 percent. It's at the point where in 2016, Ford withdrew its business from Japan entirely, despite operating here for decades.
Ryuichi, one of Trump's claim has gotten a lot of attention, the bowling ball test.
Can you tell us about that?
Right. So Japan's transport ministry says there's no such thing as a bowling ball test. Yes. Right. What he's probably thinking of is that pedestrian crash test that we mentioned before. And I think it is actually a really good example of how the two countries approach safety differently.
Japan is testing for the safety of the person hit by the car. Officials say a vehicle can pass the test even if the hood dents. In fact, they say that might be a good thing. If the hood can't absorb the shock without hurting the people inside, all the better. But again, the test is seeing how safe it is for those outside the car. And US safety standards, however, focus on the driver's well-being, and that's because their roads are wider than ours. And outside of major cities, you don't see very many people walking on the road.
No, which is a big difference. Actually, I learned to drive in California. So when I came back to Japan, it was so difficult to deal with the Japanese narrow streets. Yeah, that's right.
Experts say that is why American cars are not really fit for the Japanese market. And I wanted to see it for myself, so I spent this morning out in Tokyo's Setagaya Ward.
The street is busy with pedestrians and cars.
As you can see, the roads are pretty small. It can be tricky for cars just to get by each other. And I want to make it clear, this is a really normal neighborhood. Cities and towns across the country have streets just like these.
Even the more compact Japanese cars can have trouble. So you can imagine what it would be like for a bigger vehicle.
Driving isn't the only issue, though. I actually found a Ford and a Jeep in a parking lot. But the cars are so big, they're sticking out of the parking space. So even storing an American car comes with issues.
I happened to run into an American tourist. He gave me his two cents on why US cars are built that way.
America, our roads are bigger, our country is bigger, so we just have more our parking lots are bigger, so our cars can be bigger.
Hmm But ultimately, size isn't the only reason why American cars are not popular here. We mentioned the fuel efficiency, right? and that's obviously a huge factor. And But German automakers were also very quick to meet that market's needs. For example, think of where the driver's side is. If you need to get into a parking lot, umm for example, the ticket machine will be on the right, because that's where Japanese cars have the steering wheel. But many American brands have it on the left.
That puts people off. German brands, though, were quick to make right-side vehicles. If American brands don't take steps like that, then experts say it will be hard to attract Japanese drivers.
♪
A Japanese court has handed down a suspended prison sentence and a fine to two men involved in a car accident that left a young girl in critical condition. A four-year-old girl was struck by a stray tire in the northern city of Sapporo in November 2023.
She remains unconscious to this day.
The driver, Wakamoto Toyoshi, was charged with negligent driving, resulting in injury. He allegedly modified the vehicle with its owner, Tanaka Masamitsu, who was charged with violating a law on road transport vehicles. Sapporo District Court sentenced Wakamoto to three years in prison on Thursday, suspended for five years. The presiding judge said he had failed to properly inspect a vehicle and drove carelessly.
Tanaka was fined 200,000 yen, or about $1,400.
The girl's father expressed his dissatisfaction after the decision was announced.
It's as if my child had been killed. There's no way any family could accept such a decision. I don't want it to end like this.
He also said the scale of punishment did not match the pain and suffering caused.
Japan's nature might rail network is known to be fast, clean and punctual, but outside urban hubs, it's facing growing challenges. Passenger numbers are falling, facilities are aging, and natural disasters pose threats. We report on a regional railway company taking innovative steps to survive.
Oigawa Railway in Shizuoka Prefecture celebrates its 100th anniversary this year. Steam locomotives built as long ago as 1930 still operate here. It's a dream for train lovers.
The train is huge. I can't wait to ride it.
However, the company has been struggling. In 2022, part of its line was buried in mudslides during a typhoon. Around 20 kilometres of track, or about half of its main route, is still out of service as a result. So the company decided to bring in the new president to help put it back on the map.
I never work for a company that's stable. There's a reason why I'm here.
Torizuka is known as a revitalization contractor. He has successfully rebuilt 2 local railway companies through novel innovations. These include requiring new train drivers to pay for their own training costs.
Some say they'll visit when the route reopens, but our business will struggle to recover if they stay away. I can offer fun experiences for people to enjoy, even if the line is not yet restored.
Torizuka first decides to transform a passenger car into a dining car. He joins forces with a company to create special bento meals featuring local specialties such as sakura shrimp. and green tea.
Landscape spices up the taste.
During the journey, Torizuka entertains passengers.
You can see a tea plantation in this area. You might think that a tea plantation has a round shape, but actually many of them are now squared. That's because farmers cut them by machines.
Torizuka also focuses on its midnight trains. Once aboard, passengers ride on the train until the morning on three round trips, immersing themselves in the nocturnal atmosphere.
As it's night, I don't think I'll be able to see any scenery, but I think I'll be able to hear sounds clearly, such as the train or the river. I want to spend the time reading.
The tour is very popular and costs around 140 US dollars.
These days people are willing to pay a bit more for travel because they want to enjoy delicious food and unique experiences they can't find elsewhere. I want to work with the local community to provide a variety of services and make this region and railway a place that people from around the world want to visit.
Since Torizuka took over. Passenger numbers have steadily increased. The company is now steaming ahead toward its goal of fully opening the line by 2029.
♪
It's now time to check out world weather. Wildfires have become severe due to the drought in the US state of New Jersey. Our meteorologist Yumi Hirano has the details.
The area has been experiencing severe drought since the end of last year. That's for the first time in over 20 years. On Wednesday, the humidity dropped to only 32 percent, intensifying the fires.
Large plumes of smoke can be seen rising from forest fires that blocked out on Wednesday. Officials say the flames consumed more than 5,000 hectares and could continue to burn before the rain comes. Unfortunately, no injuries have been reported, and the 5,000 residents that were asked to evacuate have been permitted to return to their homes. As of Wednesday evening, local time, many wards in affected areas of Ocean County have been closed.
Unfortunately, no significant rain is expected in the area on Thursday. The next rainfall could come on Friday. But in the south, thundershowers are a concern. Intense rain, gusty winds, and even tornadoes are possible in Texas, Oklahoma, and Kansas. But sunny weather is expected in New York and Washington. The temperatures will be 27, which is 8 degrees higher than usual.
Clear skies are also likely in the west, such as Seattle and LA.
Moving to Asia, a frontal system is bringing downpours to southern China. Up to 120 millimeters of rain is possible in Guangdong and Fujian provinces by Friday afternoon, leading to flash flooding.
Showers could be also heavy in Hong Kong and Taipei. Sunny weather is expected in Beijing and Seoul, but people there should watch out for yellow sand. It's also expected to arrive western and eastern Japan on Friday.
That's all for now. Stay safe.
♫～
That's all for this edition of NHK Newsline. I'm Morisha Erika in Tokyo.
Thank you for watching.
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