Japanese Prime Minister Shigeru Ishiba expressed optimism on Sunday that Japan could avoid higher U.S. tariffs. He stated that President Donald Trump acknowledged Japan's substantial investment in the U.S. and its contribution to American job creation. During their initial meeting on Friday, Ishiba highlighted the employment opportunities provided by Japanese automakers in the United States. Although auto tariffs were not specifically discussed, Ishiba mentioned uncertainty regarding whether Japan would be subjected to the tariffs proposed by Trump.
While various countries have faced tariff impositions amidst the ongoing trade tensions initiated by Trump, Japan has managed to evade these actions thus far. Ishiba emphasized Japan's role as a significant investor in the U.S., creating numerous American jobs, which sets Japan apart from other nations.
Ishiba expressed hope for avoiding a tariff war between Japan and the U.S., emphasizing the importance of implementing tariffs in a mutually beneficial manner. He stressed that actions aimed at exploiting or excluding the other party would not be sustainable in the long run. Ishiba underlined the necessity of assessing any issues between Japan and the U.S. that might warrant higher tariffs.
Recent data from the U.S. Commerce Department revealed that Japan ranked as the leading foreign direct investor in the United States in 2023, with investments totaling $783.3 billion. Trump encouraged Ishiba to address Japan's $68.5 billion trade surplus with the U.S., expressing confidence that this could be resolved swiftly, particularly with Ishiba's commitment to increasing Japanese investments in the U.S. to $1 trillion. Ishiba identified potential sectors for Japanese investment, including liquefied natural gas, steel, artificial intelligence, and automobiles.
Furthermore, Ishiba discussed Trump's interest in Nippon Steel investing in U.S. Steel rather than acquiring the American company, emphasizing the importance of maintaining U.S. ownership and management. Regarding military spending, Ishiba clarified that Japan would not boost its defense budget without securing public support, stressing the need for clear communication and understanding with taxpayers.