Japan, US Align China Strategy Ahead of Trump-Xi Summit; BOJ Raises Rates Amid Inflation
September 18, 2026
At the United Nations General Assembly in New York, Japanese Prime Minister Sanae Takaichi and U.S. President Donald Trump are set to meet to align Tokyo and Washington on China issues ahead of Trump’s planned summit with Xi Jinping.
This will mark at least the fourth in-person meeting between Takaichi and Trump since she took office in October 2025, underscoring ongoing high-level engagement between Washington and Tokyo.
Takaichi has taken a firmer stance on China, describing a potential Beijing attack on Taiwan as a survival-threat scenario that could justify Japan Self-Defense Forces’ intervention in support of the United States.
Analysts say currency moves tied to policy shifts affect trade, corporate earnings, energy costs, and inflation, with potential implications for crude prices and consumer prices.
The Bank of Japan raised its key rate to 1.25%, signaling a new policy phase amid inflation, with dissent from two board members.
Beijing has recently imposed export controls affecting Japanese firms, including dual-use goods and materials,adding pressure to trade relations.
Asian Games officials say there are no accommodation issues and that facility allocations are complete, addressing prior concerns.
The yen strengthened against the dollar after the BoJ rate move, viewed as a possible prelude to currency intervention.
Takaichi emphasizes securing free and safe transit through the Strait of Hormuz as Japan diversifies supply chains amid Middle East tensions.
Briefs Finance advises investors to consider steady strategies and highlights upcoming investor workshops.
Shizuoka Prefecture will require off-season Mt. Fuji climbing plans, with fines for rescuers if climbers do not follow plans, aiming to reduce ill-prepared climbs.
Takaichi’s cabinet approval rating rose to 53% in a Kyodo News poll after reshuffle, with inflation influencing views on a proposed consumption tax cut.
Summary based on 12 sources
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Sources

NHK WORLD • Sep 19, 2026
US official: Japan-US summit set for Tuesday
NHK WORLD • Sep 18, 2026
Japan arranging Takaichi-Trump summit
Japan Wire by Kyodo News • Sep 19, 2026
Kyodo News Digest: Sept. 19, 2026
Japan Wire by Kyodo News • Sep 18, 2026
Japan, U.S. gov't arranging Takaichi-Trump talks in U.S. on Tues.: sources