TOKYO — Japanese Prime Minister Shigeru Ishiba expressed optimism on Sunday regarding Japan’s ability to avoid increased U.S. tariffs. He noted that President Donald Trump acknowledged Japan’s significant investments in the U.S. and the American jobs these investments create.
During his first White House summit on Friday, Ishiba conveyed to public broadcaster NHK that he explained to Trump the extent to which Japanese automakers are generating jobs in the United States. Although the two leaders did not specifically address auto tariffs, Ishiba mentioned uncertainty about whether Japan would face the reciprocal tariffs Trump aims to impose on imports.
So far, Tokyo has largely avoided the trade war that Trump initiated early in his presidency. While tariffs have been imposed on goods from Canada, Mexico, and China, Trump has postponed the 25% duties on North America to facilitate negotiations.
The rising trade tensions since Trump returned to the White House on January 20 threaten to disrupt the global economy. Ishiba asserted that Trump “recognized the fact Japan has been the world’s largest investor in the United States for five consecutive years, distinguishing it from other countries.”
“Japan is creating many U.S. jobs. I believe Washington won’t rush to impose higher tariffs,” he stated. Ishiba expressed hope that Japan and the U.S. could sidestep a tit-for-tat tariff conflict, emphasizing that tariffs should be structured to benefit both nations.
“Any action that exploits or sidelines the other side won’t endure,” Ishiba remarked. “The key question is whether there exists any issue between Japan and the United States that justifies imposing higher tariffs,” he added.
According to the latest data from the U.S. Commerce Department, Japan had the highest foreign direct investment in the United States in 2023, totaling $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. but expressed confidence that this could be achieved swiftly, especially after Ishiba promised to elevate Japanese investment in the U.S. to $1 trillion.
On Sunday, Ishiba highlighted liquefied natural gas, steel, AI, and automotive sectors as potential areas for Japanese investment.
He also referenced Trump’s commitment to investigate Nippon Steel’s investment in U.S. Steel rather than pursuing a buyout of the American company, a move opposed by Trump and blocked by his predecessor, Joe Biden.
“Investment is being made to ensure that it remains an American company. It will continue to operate under American management, with American employees,” Ishiba stated. “The essential point is how to guarantee it remains an American company. From President Trump’s perspective, this is of paramount importance.”
Regarding military spending, an area where Trump has urged allies to increase their budgets, Ishiba mentioned that Japan would refrain from raising its defense budget without first obtaining public support. “It’s crucial to ensure that what is deemed necessary is something taxpayers can comprehend and support,” he concluded.
