Japan pM Ishiba, after Meeting Trump, Voices Optimism Over Averting
Ishiba says no talk with Trump on auto tariffs at summit
Trump identifies Japan's US big investment, job production
LNG, steel, AI and autos are locations Japan can buy US
Nippon Steel will operate under US management, it-viking.ch staff
Japan will not raise defence spending without public support
TOKYO, Feb 9 (Reuters) - Japanese Prime Minister Shigeru Ishiba revealed optimism on Sunday that his country could avoid greater U.S. tariffs, saying President Donald Trump had "recognised" Japan's huge investment in the U.S. and the American tasks that it produces.
At his first White House summit on Friday, Ishiba informed public broadcaster NHK, he explained to Trump the number of Japanese car manufacturers were developing tasks in the United States.
The two did not specifically talk about car tariffs, Ishiba said, although he said he did not know whether Japan would be subject to the mutual tariffs that Trump has said he prepares to trouble imports.
Tokyo has so far escaped the trade war Trump unleashed in his very first weeks in workplace. He has revealed tariffs on items from Canada, Mexico and China, although he postponed the 25% duties on his North American neighbours to enable talks.
The intensifying trade stress given that Trump went back to the White House on January 20 threaten to rupture the international economy.
Ishiba said he believes Trump "acknowledged the reality Japan has been the world's largest financier in the United States for 5 straight years, and is for that reason various from other nations."
"Japan is creating numerous U.S. jobs. I think (Washington) won't go straight to the concept of higher tariffs," he said.
Ishiba voiced optimism that Japan and the U.S. can prevent a tit-for-tat tariff war, worrying that tariffs must be put in place in such a way that "benefits both sides".
"Any action that exploits or omits the other side won't last," Ishiba said. "The concern is whether there is any issue in between Japan and the United States that necessitates enforcing greater tariffs," he included.
Japan had the greatest foreign direct financial investment in the United States in 2023 at $783.3 billion, followed by Canada and Germany, according to the most current U.S. Commerce Department data.
Trump pressed Ishiba to close Japan's $68.5 billion annual trade surplus with Washington however this could be done quickly, provided a pledge by Ishiba to bring Japanese investment in the U.S. to $1 trillion.
On Sunday, Ishiba identified liquefied natural gas, steel, AI and automobiles as locations that Japanese business might purchase.
He also discussed Trump's promise to look at Nippon Steel buying U.S. Steel, rather than purchasing the storied American business - a planned purchase opposed by Trump and blocked by his predecessor, Joe Biden.
"Investment is being made to make sure that it remains an American company. It will continue to run under American management, with American workers," Ishiba said. "The crucial point is how to guarantee it remains an American company. From President Trump's perspective, this is of utmost value."
On military spending, another location where Trump has pressed allies for increases, Ishiba said Japan would not increase its defence budget without very first winning public support. "It is essential to guarantee that what is deemed necessary is something the taxpayers can understand and support," he said. (Reporting by Leika Kihara: Additional reporting by Tim Kelly; Editing by William Mallard)