The Prime Minister of Japan, Shigro Ishiba, expressed optimism on Sunday stating that his country can avoid higher rates in the United States, stating that President Donald Trump “recognized” the huge Japanese investment in the United States and the works created by Japan .
Ishiba told the NHK public broadcaster that on her first visit to the White House on Friday, Trump explained how many Japanese car manufacturers are creating jobs in the United States.
The two did not specifically discussed the theme of the car manufacturers, said Ishiba, although he said he does not know if Japan will be subject to mutual rates that Trump said he intends to impose.
So far Tokyo has escaped the commercial war that Trump has triggered in his first weeks in office. He announced the rates on products from Canada, Mexico and China, although he postponed 25% on his neighbors to allow negotiations.
The growing commercial tensions since Trump returned to the White House on January 20 threaten to break the global economy.
Ishiba said that Trump “recognized the fact that Japan was the largest investor in the world in the United States for five consecutive years and is therefore different from other countries”.
“Japan is creating many jobs in the United States. I think (Washington) will not go directly to the idea of creating higher rates,” he said.
Ishiba has expressed optimism that Japan and the United States can avoid a retaliation tariff war, underlining that rates should be implemented in such a way that “both sides benefit”.
“Any action that exploits or excludes the other part will not last,” said Ishiba. “The question is if there is a problem between Japan and the United States that justifies to impose higher rates,” he added.
Japan had the largest direct foreign investment in the United States in 2023 with $ 783.3 billion, followed by Canada and Germany, according to the last American commercial department.
Trump pressed Ishiba to reduce the annual commercial surplus of 68.5 billion dollars in Japan with Washington, but expressed optimism that this can be done quickly, given the promise of Ishiba to bring Japanese investments to the United States to $ 1 trillion.
This Sunday, Ishiba has identified liquefied natural gas, steel, artificial intelligence and cars as areas where Japanese companies could invest.
He also commented on Trump’s promise to analyze Nippon Steel’s investment at Us Steel instead of buying the historic American company – a planned purchase that Trump is against and was blocked by his predecessor, Joe Biden.
“The investment is made to ensure that an American company remains. It will continue to operate under the direction of the United States with the US employees,” said Ishiba.
“The key point is like ensuring that an American company remains. From the point of view of President Trump, this is of fundamental importance.”
As for military spending, another area in which Trump has put pressure on the allies for the increases, Ishiba has said that Japan will not first increase its budget for defense without public support.
“It is essential to ensure that what is deemed necessary both something that taxpayers can understand and support,” he said.
Source: Terra
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