President Trump has inserted currency policy into trade negotiations with Japan, jeopardizing the existing talks about tariffs. The unexpected demand for a stronger yen arose from Trump’s public accusations of intentional manipulation and demands that such discussions be prioritized. This tension was highlighted during an unannounced meeting in Washington where Trump demanded that currency policy be addressed directly. While Finance Minister Kato denies any intent to manipulate the yen market, the impact on both countries remains uncertain. Analysts express concerns over a forced change in the yen-dollar balance as it could backfire on both nations and negatively affect Japan’s fragile economic recovery.