Japanese Prime Minister Shigeru Ishiba expressed optimism on Sunday that his country could avoid higher U.S. tariffs, saying President Donald Trump had "recognized" Japan's huge investment in the U.S. and the American jobs that it creates.
At his first White House summit on Friday, Ishiba told public broadcaster NHK, he explained to Trump how many Japanese automakers were creating jobs in the United States.
The two did not specifically discuss auto tariffs, Ishiba said, although he said he did not know whether Japan would be subject to the reciprocal tariffs that Trump has said he plans to impose on imports.
Tokyo has so far escaped the trade war Trump unleashed in his first weeks in office. He has announced tariffs on goods from Canada, Mexico and China, although he postponed the 25% duties on his North American neighbors to allow for talks.
The escalating trade tensions since Trump returned to the White House on January 20 threaten to rupture the global economy.
Ishiba said he believes Trump "recognized the fact Japan has been the world's largest investor in the United States for five straight years, and is therefore different from other countries."
"Japan is creating many U.S. jobs. I believe (Washington) won't go straight to the idea of higher tariffs," he said.
Ishiba voiced optimism that Japan and the U.S. can avoid a tit-for-tat tariff war, stressing that tariffs should be put in place in a way that "benefits both sides".
"Any action that exploits or excludes the other side won't last," Ishiba said. "The question is whether there is any problem between Japan and the United States that warrants imposing higher tariffs," he added.
Japan had the highest foreign direct investment in the United States in 2023 at $783.3 billion, followed by Canada and Germany, according to the most recent U.S. Commerce Department data.
Trump pressed Ishiba to close Japan's $68.5 billion annual trade surplus with Washington but expressed optimism this could be done quickly, given a promise by Ishiba to bring Japanese investment in the U.S. to $1 trillion.
On Sunday, Ishiba identified liquefied natural gas, steel, AI and autos as areas that Japanese companies could invest in.
On military spending, another area where Trump has pressed allies for increases, Ishiba said Japan would not increase its defense budget without first winning public backing. "It is crucial to ensure that what is deemed necessary is something the taxpayers can understand and support," he said.
© Thomson Reuters 2025.
9 Comments
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deanzaZZR
Japan has run a trade surplus in tens of billions of dollars for decades with the USA. A quick search shows that Japan had a trade surplus with the USA of $70 billion in 2023. Increased tariffs are inevitable with Trump in office.
OssanAmerica
It is very possible that Trump may not push for Tariffs against Japan as he has already gained a lot from Japan with respect to LNG exports. Japan has been the biggest investor in the United States for the last 5 years. And investment in the U.S. is another one of Trump's pet issues. Tariffs are not inevitable.
Fighto!
PM Ishiba is right to be optimistic. Trump will hopefully be very impressed by Japan's increased purchase of much needed LPG gas. Plus, Ishiba has promised that the Japanese government's Nippon Steel will invest heavily in US Steel which President Trump is happy about.
Definitely a win-win for Japan. PM Ishiba is going to be massively popular in Japan after his negotiations with President Trump.
itsonlyrocknroll
Japan is surrounded by belligerence, Russia, North Korea, Chinese governments that never fail at every opportunity to threaten, harass, weekly sometimes daily incursion to Japan's airspace, seas, North Korea ballistic missile launches.
I ask you honestly would President Trump truthly honour, The Security Treaty between Japan and the United States of America?
Go to war?
Why would allies, J taxpayer provides the costs of US forward bases, Japan economic solidarity..
Japan had the highest foreign direct investment in the United States in 2023 at $783.3 billion, followed by Canada and Germany, according to the most recent U.S. Commerce Department data.
Japan Prime Minister, dare I state it has to grovel, to a supposedly trusted ally, to avoid punitive tariffs.
No Japan government must demand an equal partnership or find its own way, militarily economically.
itsonlyrocknroll
I support Donald trump over Kamala Harris.
I don't trust Donald Trump not to slip and slide if the government of China was to blockade Taiwan, the east/south China sea trade shipping routes.
I have experienced, taken part in fudge n fence, prevarication, stall, within city of London institutions to leverage hedge funds to commit to a course of action that has provoked global economic collapse.
Would Trump commit to a "Treaty" without redefining questioning its bottom line covenants, pledges, protocols?
HiJapan
This man has threatened the sovereignty of a G7 allied nation. He will not negotiate with Japan in good faith.
ZENJI
Bad mistake Sir. History shows trump cannot be trusted.
trump will abuse you and Japan.
TokyoLiving
Never trust US..
Never trust Trump..
Q4Kaos
He's a bad news, period.