Trump says US and Japan will work to cut trade deficit as he greets Ishiba

Daftar Isi

I'm ready to help.

"We love Japan!" Trump said as he greeted Ishiba and the two shook hands. He later told a group of reporters, as they sat together in the Oval Office, that the two countries would co-operate to reduce the US trade deficit with Japan to "zero".

"It should be a relatively straightforward process," he said. "I don't foresee any issues emerging. They also want a fair deal." According to the latest trade statistics for the United States, Japan's goods trade surplus for 2024 stood at £55.8 billion compared with £66.4 billion in 2023.

Ishiba stated to the president that he was struck by the fact that Trump had escaped an assassination attempt in July, and that at that time he concluded that the Republican would secure the US presidential election in November.

Ishiba stated that Japan is committed to collaborating closely with the United States to bring peace to the globe, and informed Trump that Japan is prepared to increase its investments in the US. He also mentioned that Japanese companies such as Toyota and Isuzu are planning to do so.

Donald Trump further stated that he would also be discussing North Korea with Ishiba, as well as Nippon Steel's £11.1 billion (£15.3 billion or $14.9 billion) bid to acquire U.S. Steel, a takeover that he has actively opposed.

The President said he will make public a proposal for additional tariffs on many countries next week.

Donald Trump, whose initial three weeks in office have ripped up norms and caused a stir in foreign capitals from Ottawa to Bogota, has adopted a more traditional approach towards Washington's long-standing Asian-Pacific partners, including Japan, South Korea, Australia and the Philippines.

But those friendships may be put to the test as a disagreement between Trump's government and China over fake opioids early on could lead to difficulties in business relations in Asia and further afield, including with Japan.

A senior Trump administration official informed journalists that the leaders would discuss military training manoeuvres, enhanced cooperation on defence equipment and technology, foreign investment and energy.

They will also discuss cybersecurity, space, and shared business opportunities in the fields of artificial intelligence and semiconductors, the official stated.

"The United States takes great pride in our enduring and close relationship with Japan," the official said. "Our two countries will continue to collaborate in order to guarantee that we effectively deter potential threats in the area through our comprehensive range of military capabilities," the official said.

Asked about the US trade deficit with Japan and the threat of tariffs, a second senior Trump administration official said: "We are all aware that President Trump gives a great deal of consideration to deficits as an indicator of the economic fairness and robustness of the relationship, so I'm sure discussions will take place about that."

Trump imposed a 10% tariff on all imports from China, claiming it was an "opening salvo" in a bitter trade dispute between the world's top two economies, prompting consumers and businesses to rapidly reorganise their strategies.

Japan is heavily reliant on international trade; it is a significant exporting nation and heavily reliant on imports for its food and natural resources, with many of its companies having significant investments and ties in China.

Tokyo shares the hawkish stance towards China of Trump's national security team due to Beijing's global aspirations and its considerable claims to territory in Asia, encompassing the economically crucial island of Taiwan.

At the same time, Japanese officials are cautious of potential attempts by Beijing to win over the U.S. president with promises of cooperation on key global matters, including trade. Trump spoke to Chinese President Xi Jinping just days before taking office and has stated that he plans to discuss tariffs with him shortly.

Japanese officials speaking privately say they feel at ease dealing with Trump's China hardliners, including Secretary of State Marco Rubio and national security adviser Michael Waltz, but have more reservations about those in the administration with strong business links in Beijing, such as billionaire Elon Musk, who has developed a significant base of power in Washington.

President Trump and the Japanese Foreign Minister Ishiba are due to hold a joint press conference on Friday afternoon.

BRACING FOR TRUMP DEMANDS

The early White House visit for Tokyo is a promising sign from the newly inaugurated Trump administration.

There are two foreign heads of state who have been welcomed in the Oval Office," said Rahm Emanuel, Biden's ambassador to Tokyo. "That includes Bibi Netanyahu of Israel, and the Prime Minister of Japan. So that's a good thing, and that's a positive indicator.

President Trump had good ties with the late Japanese Prime Minister Shinzo Abe but had no prior connection with Ishiba, who became Prime Minister in October. This is something Japanese officials hope to improve, and they are considering inviting President Trump to visit Japan.

Tokyo has been making preparations, officials have said, including discussing the possibility of purchasing more liquefied natural gas from the United States and providing financial backing for a $44 billion gas pipeline project in Alaska. SoftBank CEO Masayoshi Son has also committed to investing numerous hundreds of billions in artificial intelligence in the U.S.

"The Japanese are definitely exploring ways to mitigate the deficit and generate employment in US sectors which are of great interest to Donald Trump," said Kenneth Weinstein, chief of Japan programmes at Washington's conservative Hudson Institute think tank.

There are issues going on beyond trade, including the attempted buyout of U.S. Steel by Japan's Nippon Steel. Former President Joe Biden put a stop to this but has put the implementation on hold until any legal proceedings have taken place; Donald Trump has also promised to block the deal.

However, there are also indications of stability and the two leaders are anticipated to reach a consensus on security matters, encompassing China and Taiwan, according to another source well-versed in the dialogue.

(Reporting by Trevor Hunnicutt and David Brunnstrom in Washington; Additional reporting by Tim Kelly and John Geddie in Tokyo and Ryan Jones in Washington; Editing by Gerry Doyle and Alistair Bell)