politics

Abe promises Trump new Japanese investment in U.S.

52 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Thomson Reuters 2018.

©2018 GPlusMedia Inc.

52 Comments
Login to comment

So good old Shinzo went to Washington and bribed Trump by offering more investment in the US just so Donnie would bring up the abductee problem when he meets with Kim next week. By Abe running to the US he has made Japan look week and skirting the other G7 leaders, and it also shows how self-serving he can be. I hope the other leaders freeze both him and Trump out when then meet in Canada.

2 ( +20 / -18 )

Abe isn't "bribing" Trump, he is offering tribute like a vassal state making a request of their King.

4 ( +19 / -15 )

Going by the past "promises" urges pledges. Give the man a hamburger then send him back to mum. A clueless man wandering the world in the hope that one day he might achieve something.

0 ( +12 / -12 )

""We want new auto plants going into Michigan and Pennsylvania and Ohio."

So rather than reduce barriers to give Japanese consumers more choice, Abe has foolishly agreed to subsidize Trump's re-election campaign in swing states, while other world leaders smartly target red states with counter-tariffs.

21 ( +24 / -3 )

I am neither a fan of Abe, nor of Trump.

Abe is indicating Japan will continue to invest in the U.S. with factories / production facilities. Trump is indicating he wants to address trade imbalance which is a documented issue in the United States.

Abe went to visit Trump before the North Korean meeting, which as Japan's Prime Minister is what he should do.

In spite of my distaste for these two men I fail to see anything wrong with this. Bashing everything these guys do to me takes away from the real issues which both these guys have.

5 ( +12 / -7 )

Anyone who is against "fair and mutually beneficial economic partnership" is a moron. It is about time the US got fair deals with other countries.

-7 ( +7 / -14 )

"while Abe's government says multilateral agreements would be best."

We all know why. Japan likes convoluted hard to measure deals that they can take advantage of. No more. Fair or no deal. Finally a President who looks out for American interests. Finally...

-6 ( +4 / -10 )

Sounds like a good deal. Well done, Mr Abe! Japan invests billions of dollars in the U.S.A. and in exchange, Trump will talk to Kim about the abductees.

(Sarcasm)

7 ( +16 / -9 )

Bluff of Trump works. His violence is respected. It is not the common sense that changes the world but violence and shocks. North Korea yielded to the might of U.S.

-9 ( +4 / -13 )

LoL this individual gives brown nosing a whole new meaning. Wheres this 'investment' fund supposed to come from? Prioritizing another nation over your own is grounds for dismissal no? But alas, democracy is lip service in grand ol japan. Oh well, back to sleep sheeple.

4 ( +11 / -7 )

Sorry kids, your new nursery school's been cancelled.

Very sorry Mrs. Watanabe but your pension won't be available until you're 75.

Sorry about that tunnel roof collapse folks, we had to cut the repair budget.

But look on the bright side: Ohio got some new factories and Trump's going to win re-election.

7 ( +12 / -5 )

Bwahahaha! It was just a few days ago Abe and his cronies were threatening Trump with retaliation over the import tariffs he introduced and here we see Abe sucking up to him like he is a god. Bwahahaha!

5 ( +11 / -6 )

Tokyo-Engr, what you failed to see is trade imbalance is the economic structural issue that is excessive consumption, and less savings and investments. Trump uses tariff to blackmail others to get what he wants, and Abe is the first to kowtow to Trump and make Japan look weak. On North Korean meeting, Abe just wants Japan to be in the picture, being mentioned in the history book, abductees are being used as an excuse. China is one of the main actors here, but you don’t see Xi excessively tries to please Trump.

1 ( +4 / -3 )

China is one of the main actors here, but you don’t see Xi excessively tries to please Trump.

Oh really? Xi / China promised to buy $70 Billion of goods from the US.

Trump is able to bully South Korea, Japan and China and get away with it because they are divided.

2 ( +3 / -1 )

"We're working hard to reduce our trade imbalance which is very substantial"

Question : if americans want to reduce the trade imbalance, why don't THEY buy american ? That would reduce trade imbalance.

Nobody is forcing the consumer to buy foreign products.

11 ( +11 / -0 )

I hope the other leaders freeze both him and Trump out when then meet in Canada.

That statement lives in the dream world.

1 ( +4 / -3 )

China is one of the main actors here, but you don’t see Xi excessively tries to please Trump.

Oh yes he does, just without the fanfare.

3 ( +5 / -2 )

With nothing to invest in within Japan, European economies stagnant, and America the only country currently enjoying economic growth, Japan would have been investing in America anyway.

Trump and America don’t need Japanese investment, they need markets for their goods. More than anyone else, the Japanese people would benefit by liberalized trade. But what would be good for the people would not be good for the LDP and Japan Inc, who do not want to give up their monopolies on political power and Japan’s economy.

-1 ( +3 / -4 )

Come on people! It's Premiun Friday that's a pledge, urge, promise Shinzo has never backed down on...oh. All he has to do is promise more cash. Round of premium golf topped of with a premium Hamburge. Anyone....Anyone.....

-2 ( +1 / -3 )

Let Japan co-fund & restart the production of F-22 raptors and order to replace all the F-15Js. This is the only way for Trump to be satisfied in narrowing trade defecit with Japan.

-1 ( +0 / -1 )

If you know anything about Trump’s view on trade, this is exactly what he wants.

He probably put up tarifs and made statements to shock and scare people, allies included. At the end of the day he wants a better deal for the US and less of a trade deficit.

3 ( +5 / -2 )

Trump said: "The United States seeks a bilateral deal with Japan that is based on the principle of fairness and reciprocity," But to Trump, it means the tariffs will be the same, more investments from Japan, to open the market to buy even low quality US products and more weapons in the JSDF arsenal. Is that the fairness Mr. Trump want to say? That's ticklish to me: PM Abe approaches only to obey presid. Trump's orders, anybody can do to make him happy. Well, Mr. Abe stay there with your "best friend" and no need to come back.

-2 ( +1 / -3 )

I am an exporter running a company in Japan. I sell products to pretty much every country, from Albania to Zambia. I have been doing this for a decade, and know very much about tariffs and market access.

America's market is 100% free to my products. There are no tariffs, no fees, no VAT, not even sales tax. No other country in the world has a completely free market for imported goods. Tariffs range from a few percent in Canada and Australia, 20% to 50% in Europe, and upwards of 60% in developing countries.

Why should America's market be completely free when no one else's is? I benefit a lot from America's free market, and would be harmed considerably if my goods were tariffed or taxed. Yet, it is not fair that Japan does not allow the same access to American goods that America offers to Japanese goods.

Japan's investing more in America is a joke. America's growth right now is over 4%. Japan's growth right now is negative. Spring growth in the UK was nil. German growth has been revised downward, to 2%. Japan will invest in America out of necessity, not out of niceness to Trump.

As the world's top economy, America is the economic keystone. Economic activity in America offsets lack of activity, and poor economic management with America's trading partners. Without the income from sales to America, managing domestic spending on social programs and the like might not be possible. Domestic consumption pushed down by VAT, and other taxes is compensated for by money brought in by exports, which, in America, are not subject to the same fees or taxes.

If America closes it's free market to Japan and Europe, the results would be catastrophic to these countries. They can threaten retaliatory tariffs against American goods, which is an empty threat because in Europe and Japan, American goods are already taxed and tariffed by at least 20%. America will not be harmed nearly as much by Japanese or European tariffs as these countries would be by American tariffs.

Abe is in a tough spot, he loses no matter what he does.

5 ( +8 / -3 )

As the world's top economy, America is the economic keystone.

It's like the good old days of the booming economy of early 2008.

1 ( +2 / -1 )

A minion and his mad man-child master. Great!

0 ( +4 / -4 )

@Flowers: Thanks for your response. You make a very good point and I partially agree with you. However, I actually I do not fail to see the excessive consumption you mention. As an American I agree that Americans are excessive consumers which is a major contributor to the trade imbalance.

I understand it is popular on this website to criticize Abe and I also see where there are reasons to do so. However in this case I do not believe for a moment Abe is "kowtowing to Trump" as I believe Abe is smarter than Trump and he is actually not giving away anything. From what I understand from working directly with Toyota and Denso some of this investment is already planned anyway (thus the statement about giving nothing away)

If my understanding is correct then Abe is "playing it smart" politically. From Trump's perspective I think his thinking toward Japan is still stuck in the "bubble period" and for some reason he is not recognizing the value of this investment by major Japanese manufacturers into Japan

2 ( +2 / -0 )

Japan promises new investment and the US promises new tariffs. Wow, what a great partnership!

-3 ( +2 / -5 )

Abe is the best butler Trump didn't find, as long as he is a prime minister, when his govt. term finish Trump will kick him out. All Japanese citizens know why he won't serve to Trump when he is back to business as CEO.

-1 ( +1 / -2 )

sangetsu03Today  09:54 am JST

You explain unfair trade so well, let's hope others pay attention to what you are saying.

0 ( +2 / -2 )

With what money? Last time I checked, Japan's internal debt was 300+% of GDP. Is Abe going to try to strong-arm Japan, Inc into investing? No details at all in this article, it raises more questions than it answers.

3 ( +3 / -0 )

And Abe bends over and shows once again why he is weak and unfit to be a leader, and Trump will keep ignoring him anyway.

1 ( +4 / -3 )

@markx. You said it all, apart from all our pension and healthcare tax money will go to America, which most economic professors predict a major meltdown ecomic depression in a year or two. The stock markets is going to crash, as all japans money.

0 ( +2 / -2 )

http://www.politifact.com/truth-o-meter/statements/2017/mar/02/donald-trump/trump-exaggerates-economic-burden-export-tariffs-s/

Interesting fact check on taxes and tariffs.

"So our producers do face ‘very high’ taxes in many markets," said Gene Grossman, a professor of international economics at Princeton. "However, the local producers also face these taxes when they sell locally, so the taxes do not disadvantage the United States producers relative to the local producers."

2 ( +2 / -0 )

Japan has wealth but that wealth is derived from its export business.

No growth in Japan means that the Japanese have to export to make money.

Abe is trying to keep Japan afloat....

-1 ( +1 / -2 )

Their expressions in the picture say it all

0 ( +1 / -1 )

Wasn't the saying: one hand washes the other?

In this case here I strongly assume that Abebe brought the water and soap.

What kind of prime (???) minister is he?

0 ( +1 / -1 )

What kind of prime (???) minister is he?

He's a lapdog. nothing more.

One more thing- He's going to get lambasted at the G7. That's my bet. Other countries are slapping tariffs on the US and this idiot is cozing up to Trump.

0 ( +2 / -2 )

One less G7 member?

Why not. "You're either with or against me"!

If Abe thinks he is better off with deTrump .... let him give it a try.

Only problem is, that "Mr and Mrs Watanabe" will have to carry the burden in the end.

1 ( +2 / -1 )

Question : if americans want to reduce the trade imbalance, why don't THEY buy american ? That would reduce trade imbalance.

That is a very good question?

2 ( +2 / -0 )

American executives in those towers in NYC decice to send production overseas to they can produce products cheaply and get high profits to please their investors. Trump should talk to those executives and convince US consumers that US products are just as good as products made overseas.

3 ( +3 / -0 )

This is one of those gear grinding moments where reality management Japan style comes face to face with reality. When the oft-repeated protestations about lopsided surpluses being totally innocuous and not dependent on domestic markets being quarantined from international competition are shown for the lies they are.

1 ( +1 / -0 )

Trump and Abe are not friends. Trump has no friends. Trump does not like Abe, nor does he like any other national leader. Trump has never been a politician, politicians have always been his enemies.

For those who think Abe is smarter than Trump, or that Trump is stupid, don’t deceive yourselves. Abe is nothing but a hereditary politician; a suit, a good head of hair, but no substance. If Abe were any kind of leader, he wouldn’t have brought Japan where it is right now.

As for those who think Trump is stupid, think for a moment. This “stupid” man came out of nowhere, hijacked a political party to become it’s candidate against it’s will, and against it’s full resistance. He ran mainly on his own money, running against a mainstream candidate with the full support of Wall Street, and America’s corporate and political establishments. He raised less than one-third as much money as she did, and spent one-fortieth as much on political ads.

And he still won. It was the most amazing feat in the history of modern politics. If a stupid person could do all of that, I would hate to see what a smart person could do.

Abe is not strong enough to fight against Trump. To be strong, one needs to be in a position of strength. Abe is the prime minister of a country which is decline, and on economic life support. Abe has absolutely nothing he can use to threaten Trump.

Europe is in a marginally better position, but not enough to win against Trump. Collectively, Europe has the strength to get concessions, but it’s not nearly strong enough to win a fight. As of this week, America’s economy reached $100 trillion in value. It is the engine pulling the world’s economic train, at least for now.

Trump’s tax cuts and tariffs are one thing, what is greater is his deregulation. He is actively doing what Abe should have started doing 5 years ago. But Abe is beholden to his party, and the powers-that-be, while Trump is beholden to nobody. It’s amazing to watch.

1 ( +2 / -1 )

Oh really? Xi / China promised to buy $70 Billion of goods from the US.

Trump is able to bully South Korea, Japan and China and get away with it because they are divided.

China and the EU raised tariffs on products made or grown in red states. Follow the news .

A trade war has no winners on the longer run, only T clowns believe that :)

0 ( +2 / -2 )

Europe is in a marginally better position, but not enough to win against Trump. Collectively, Europe has the strength to get concessions, but it’s not nearly strong enough to win a fight. As of this week, America’s economy reached $100 trillion in value. It is the engine pulling the world’s economic train, at least for now.

Indeed, at least for now. But when suppliers see barriers they will search for alternatives.

China, the EU and Japan are already improving the trade ties between each other and the rest of the world.

The EU has potential in the Eastern territories to strengthen the internal market and China, still a development country, will move slowly but surely to the position of a mature market like the US and become less dependent of exports. Export as percentage of the GDP is already lower then the EU.

The Americans will remain the Romans of these days in the foreseeable future but on the longer run things will change.

0 ( +1 / -1 )

The Americans will remain the Romans of these days in the foreseeable future but on the longer run things will change.

America has a few unique advantages which neither Europe nor China enjoy. First is geography. America has costs on both the world's major oceans, which may not sound like anything special, but which facilitates trade with both Europe and Asia. Next, America is fully self sufficient in agricultural and material resources, and is on the verge of becoming energy-independent. Next, America has vast amounts of unpopulated land. America is very much farther away from being a mature economy than either Europe or China.

What happens over the next 3 to 7 years will make a big difference in America's long-term future. Cutting the corporate tax rate was a hateful act to many, but it has already begun to attract more business to America. What is bigger is the current rate of deregulation, which is occurring at far greater speed than most people realize. The main things driving manufacturing and jobs from America to Asia has never been American labor costs, but costs associated with taxation and regulation.

Attacking the economic burdens of taxation and regulation would be impossible for anyone other than Trump. For those of you who are unaware, taxes and regulations are not implemented for the reasons you think they are. You may think that their purposes are to raise revenue for important services, and improve the safety of products or the environment. In reality, their purpose is for established industries to pull up the ladder behind them, to limit competition, and create monopolies. Don't believe it? How many car companies are there in America in 2018? How many aircraft companies? How many motorcycle or bicycle companies? How many independent banks and insurance companies? Turn back the clock 100 years to 1918, when America had a fraction of it's current population. How many of the above companies did we have in 1918? How is it after a century of population growth and economic growth that we have moved from having thousands of such companies to the handful we have today?

As of the end of 2016, the US federal tax code contained 74,608 pages. The federal register of rules and regulations had been growing at a rate of more than 20,000 pages per year since Clinton was in office, and accelerated to more than 30,000 pages per year the last two years Obama was in office. Adding state taxes, ruled, and regulations adds even more pages. This is intentional. Congress creates taxes, rules, and regulations. This help some, and harm others. If you have deep enough pockets, you can buy an exemption or loophole for your company or industry which allows you to keep running, but which is a iron gate to any competitor who wants to enter the market.

Should these barriers be thrown down, and, at the moment, they are, it could be a wonderful thing for America. Australia, fearing that America is developing an edge, has started considering doing the same things; cutting their corporate tax, and implementing deregulation.

For those who think that state control of business is essential for the well being of the people, consider that the state itself is a business, run for the advantage of those who govern the state. There is no subtle difference between businesses which we are free to choose to trade with or not, and governments whom can compel us to buy their services, and penalize us if we don't.

China is focusing on trade with America, not Europe. America's market is already free, and it's in China's interest to keep it that way. Europe's economy is not free, and, until it is, China could care less. And if Europe must open it's markets further to become partners with China, why not save everyone a great deal of trouble and do so with America right now?

The simple answer is that liberalizing trade reduces the power of the state, those who run the state, and those who depend on the state, which are generally it's largest corporations. That is why Abe's hands are completely tied, and why Europe prefers to fight than to play.

1 ( +1 / -0 )

America is very much farther away from being a mature economy than either Europe or China.

A mature economy has a slowing GDP growth, a decreased spending on infrastructure, just a relative consumer growth and reached an advanced development stage.

https://marketrealist.com/2015/05/us-gdp-growth-converging-europe-japan

Some market segments in a mature economy may have larger growth figures which is very much true for the US. But you know about the state of the infrastructure in the US compared to the EU and Japan and you didn't mention about the low education levels and skills among large segments of US workers.

China is focusing on trade with America, not Europe. America's market is already free, and it's in China's interest to keep it that way. Europe's economy is not free, and, until it is, China could care less

Not true either as trade with the US and China has about the same level for the EU.

http://ec.europa.eu/eurostat/documents/2995521/8765917/6-26032018-AP-EN.pdf/0a4e2aea-1654-4c0d-92b1-c44ac844726f

I'm not going to reply on other issues in your post as my coffee breaks are not that long, but at least you make more work here then most T supporters on this forum :)

-2 ( +0 / -2 )

A mature economy has a slowing GDP growth, a decreased spending on infrastructure, just a relative consumer growth and reached an advanced development stage.

I am wrong in saying that a lot of the rail network in the U.S privatized?

To my mind there are few more important pieces of infrastructure than rail and relying on private investment to maintain and improve the network is surely a mistake.

For me, that is an advantage that China and many other Western countries have over the U.S.

-1 ( +0 / -1 )

Abe, for his part, pushed Trump to raise the issue of Japanese abductees held in North Korea when he meets North Korean leader Kim Jong Un in Singapore next week. Abe said he wanted to make sure that Trump's efforts to negotiate an agreement don't harm Japan's interests. Trump said Abe talked about the abductees "long and hard and passionately, and I will follow his wishes and we will be discussing that with North Korea absolutely."

Go ahead and slap face of the thousands of left behind America fathers of kids Japan has kidnapped in addition to ignoring that Japan kidnapped thousands of Koreans as slaves and the hatred continues, sooner or later this will explode and there will be hell to pay. I support Korea condemn Japan for its actions and demand justice.

0 ( +0 / -0 )

A mature economy has a slowing GDP growth,

Not necessarily, because growth varies from season to season. The number one indicator of mature economy is lack of population growth.

you make more work here then most T supporters on this forum :)

I am a Trump supporter by default. I was formerly a Hillary supporter, and caucused for her in 2008. Now I don't care for either political party, I hate them both equally, because, fundamentally, they are one and the same. Trump is neither a republican nor a democrat, and that is the main reason for my support.

0 ( +0 / -0 )

"Thank you, Godfather (kisses ring)."

1 ( +1 / -0 )

fundamentally, they are one and the same

Absolutely agree, and more [potential] voters in the US should realise that. Mentioned that so many times to Obama & H. Clinton fans in Europe.

-1 ( +0 / -1 )

What kind of influence would Abe use to boost Japanese investment in the US?

My taxes, or does he control Japanese private sector companies?

What a horrid model Japan’s economy is run by, either way.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites