Japan, Canada vow to work together to maintain financial market stability

Japan and Canada have agreed to collaborate in ensuring stability in financial markets and the global financial system amid escalating instability caused by volatile trade dynamics.

This was confirmed by Japan's Ministry of Finance on April 9, according to Reuters, following a phone conversation between Japanese Finance Minister Katsunobu Kato and his Canadian counterpart, Francois-Philippe Champagne.

According to the ministry's statement, both officials expressed concern over the aggressive tariffs imposed by the US government, the most recent being the sweeping reciprocal tariffs set to take effect on April 10, including a 104% levy on Chinese imports. In retaliation, Beijing threatened to increase tariffs on US goods by up to 84% as early as the next day.

This back-and-forth escalation has caused a market downturn, with bond prices plunging and global stocks continuing to fall. US Treasuries, considered a safe haven for the global financial system, were also pressured by fresh selling on April 9, signaling that investors were unloading their safest assets. Additionally, the US dollar weakened against other major currencies.

Japan has pledged to work with the G7 advanced economies, which will be under Canada's leadership this year, and the International Monetary Fund to help stabilize the market turmoil triggered by US tariffs.

By Nazrin Sadigova