Japanese Prime Minister after meeting with Trump: I believe the US will not immediately accept the idea of ​​higher tariffs

Japanese Prime Minister Shigeru Ishiba expressed optimism on Monday that his country could avoid more U.S. tariffs, saying President Donald Trump "recognized" Japan's large investments in the United States and the American jobs it creates.

In their first meeting at the White House on Friday, Ishiba, as he told public broadcaster NHK, 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 avoided the trade war that Trump launched in his first weeks in office.

"Japan is different from other countries"

Trump has announced tariffs on goods from Canada, Mexico and China, although he has delayed a 25 percent tariff on his North American neighbors to allow for negotiations. The escalation of trade tensions since he returned to the White House on January 20 is threatening the global economy.

Ishiba said he believed Trump "recognized the fact that Japan has been the world's largest investor in the United States for five consecutive years and is therefore different from other countries."

"Japan is creating many jobs in the US. I believe (Washington) will not immediately go for the idea of ​​higher tariffs," he said, according to Hina.

Ishiba expressed optimism that Japan and the US can avoid a "tickle-for-tick" tariff war, stressing that tariffs should be imposed in a way that "benefits both sides."

"Any action that exploits or excludes the other side will not last," he said. "The question is whether there is any problem between Japan and the United States that justifies imposing higher tariffs."

Promised to increase Japanese investment

Japan had the largest foreign direct investment in the United States in 2023 with $783,3 billion, followed by Canada and Germany, according to the latest data from the U.S. Department of Commerce.

Trump has pressed Ishiba to eliminate Japan's $68,5 billion annual trade surplus with Washington, but has also expressed optimism that it could be done quickly, given Ishiba's promise to bring Japanese investment in the United States to $XNUMX trillion.

Now Ishiba has identified liquefied natural gas, steel, artificial intelligence and automobiles as areas where Japanese firms could invest.

On military spending, another area where Trump is pressuring allies for increases, Ishiba said Japan will not increase its defense budget without first gaining public support.