Japan resists U.S. pressure on FX in trade talks ahead of Abe-Trump summit

Japan is resisting increasing U.S. pressure to link trade with currency issues as leaders of the two close allies are set to hold a summit in Washington on Friday, with trade and North Korea high on the agenda. Japanese ministers discussed trade and currency issues with their U.S. counterparts in Washington ahead of the summit between Prime Minister Shinzo Abe and President Donald Trump, in a last-minute bid to keep Washington from linking the issues. Trump has made clear he is unhappy with Japan’s trade surplus with the United States - much of it from auto exports - and wants a two-way deal to fix it. Trump and Abe agreed last September to start trade talks in an arrangement that protects Japanese automakers from further tariffs while negotiations are going on. U.S. Treasury Secretary Steven Mnuchin had said that in future trade deals, including one with Japan, the United States would like to include a provision to deter forex manipulation.