Japan told Group of 20 countries that tariffs aren’t the right way to fix imbalances, and that countries facing such situations need to address them through domestic efforts, according to Finance Minister Katsunobu Kato.

"Japan said that tariffs aren’t really the right tool to fix excessive current accounts imbalances,” Kato told reporters Thursday. U.S. Treasury Secretary Scott Bessent did not attend the gathering.

Kato spoke after the first day of the Group of 20 Finance Ministers and Central Governors’ meeting near the city of Durban on South Africa’s east coast. He was a lead speaker in several sessions, including a closely watched one on the global economy.

The minister’s comments come as the global economy braces for higher U.S. tariffs ordered by U.S. President Donald Trump — who has seen the tariffs as a way to fix the U.S.’ trade deficits with various countries, and bring more manufacturing to America.

Japan is already being hit by 25% levies on cars and steel, with across-the-board tariffs set to rise to 25% from 10% on Aug. 1 barring a deal.

Many G20 participants expressed the view that the world economy hasn’t seen the potential risks fully materialize as many might have expected, and market stresses appear to have eased somewhat, a Finance Ministry official accompanying Kato said. Still, the official said that many participants, including international organizations, emphasized the need to stay cautious about risks going forward.

The yen has experienced increased volatility since April when Trump announced sweeping tariffs. Amid political uncertainty ahead of Japan’s Upper House election, the currency is currently trading at its lowest level since before the trade war began.

"Continued attention should be paid to excessive volatility in the foreign exchange market that’s driven by factors including speculation,” Kato said, adding that existing understandings on currencies should be maintained.

Months of negotiations between Japan’s top negotiator, Ryosei Akazawa, and Trump’s aides have so far yielded little clear progress, with automotive tariffs remaining a major sticking point.

The escalation of Trump’s tariff policies is prompting many countries to explore stronger international cooperation. The European Union is considering coordinated measures with partners, including Canada and Japan, it has been reported.

Kato said he emphasized at the meeting the significance of an open and free multilateral trade system and predictable economic management, though he said there were no specific talks on collaboration to counter the U.S.