In Tokyo, Japanese Prime Minister Shigeru Ishiba conveyed optimism on Sunday regarding the potential avoidance of increased U.S. tariffs. He mentioned that President Donald Trump had acknowledged Japan’s substantial investment in the U.S. and the significant number of American jobs it generates. During their initial White House meeting on Friday, Ishiba informed public broadcaster NHK that he had highlighted the role of Japanese automakers in creating employment opportunities in the United States.
Although the specifics of auto tariffs were not addressed during their discussions, Ishiba indicated uncertainty about Japan potentially facing reciprocal tariffs, which Trump has proposed for imports. Tokyo has managed to steer clear of the trade conflicts initiated by Trump since his inauguration, which have involved tariffs on goods from Canada, Mexico, and China. While the escalating trade tensions post-Trump’s return to office on January 20 pose a threat to the global economy, Ishiba expressed confidence in Trump’s recognition of Japan’s status as the top investor in the U.S. for five consecutive years.
Ishiba emphasized that Japan plays a significant role in creating numerous job opportunities in the U.S., which he believes might deter Washington from hastily resorting to heightened tariffs. He remains hopeful that both Japan and the U.S. can sidestep a tariff dispute by mutually benefiting from any tariff implementations. The prime minister stressed that actions designed to exploit or exclude the other party are unsustainable in the long run.
Commenting on foreign direct investment in the U.S., Ishiba pointed out that Japan led the way in 2023 with an investment of $783.3 billion, followed by Canada and Germany. Trump urged Ishiba to address Japan’s $68.5 billion annual trade surplus with the U.S., expressing optimism that this issue could be swiftly resolved with Ishiba’s commitment to escalating Japanese investments in the U.S. to $1 trillion.
On Sunday, Ishiba identified potential areas for Japanese investments such as liquefied natural gas, steel, artificial intelligence, and automobiles. He also touched on Trump’s interest in Nippon Steel potentially investing in U.S. Steel as an alternative to acquiring the renowned American company – a proposed acquisition that was opposed by Trump and blocked by his predecessor, Joe Biden.
Ishiba emphasized that any investment should ensure the retained American nature of the company, highlighting Trump’s paramount concern in this regard. Regarding military spending, an area where Trump has been pressing allies for increases, Ishiba clarified that Japan would not boost its defense budget without first garnering public support. He underscored the importance of aligning perceived necessities with taxpayer understanding and endorsement.
