Treasury Secretary Scott Bessent is making a pit stop in Japan ahead of Trump’s Beijing visit later this week, signaling an effort to shore up the countries’ relationship amid talks with China.
Officials are expected to dig into the next phase of Japan’s pledge to invest $550 billion in the US strategic industrial base after the country signed its first loan earlier this month, sending $2.2 billion to projects in Texas, Georgia, and Ohio.
They’re also likely to discuss monetary policy, given Japanese bond volatility that continues to spook US investors, a topic that could turn contentious: Though Bessent has urged Japan to calm markets by embracing tighter monetary policy, Tokyo reportedly recently intervened in the foreign exchange market to prop up the yen instead.
That’s likely to draw criticism from Bessent, whose hedge fund track record in Japan has so far translated into a more assertive approach.