Japan pM Ishiba, after Meeting Trump, Voices Optimism Over Averting
Ishiba states no talk with Trump on car tariffs at top
Trump acknowledges Japan's US substantial financial investment, task development
LNG, steel, AI and cars are locations Japan can invest in US
Nippon Steel will run under US management, staff
Japan will not raise defence costs without public assistance
TOKYO, Feb 9 (Reuters) - Japanese Prime Minister Shigeru Ishiba revealed optimism on Sunday that his nation might avoid higher U.S. tariffs, saying President Donald Trump had "recognised" Japan's huge investment in the U.S. and the American jobs that it creates.
At his first White House top on Friday, Ishiba told public broadcaster NHK, he explained to Trump the number of Japanese automakers were producing jobs in the United States.
The 2 did not particularly discuss auto tariffs, Ishiba said, although he said he did not know whether Japan would be subject to the mutual tariffs that Trump has actually said he plans to impose on imports.
Tokyo has so far escaped the trade war Trump unleashed in his very first weeks in workplace. He has revealed tariffs on products from Canada, Mexico and China, although he delayed the 25% duties on his North American neighbours to enable talks.
The trade stress given that Trump returned to the White House on January 20 threaten to rupture the global economy.
Ishiba said he thinks Trump "acknowledged the reality Japan has been the world's largest investor in the United States for five straight years, and is for that reason various from other countries."
"Japan is producing many U.S. tasks. I believe (Washington) will not go straight to the idea of greater tariffs," he said.
Ishiba voiced optimism that Japan and the U.S. can avoid a tit-for-tat tariff war, worrying that tariffs must be put in place in a method that "benefits both sides".
"Any action that exploits or excludes the other side will not last," Ishiba said. "The question is whether there is any issue in between Japan and the United States that calls for imposing greater tariffs," he included.
Japan had the highest foreign direct financial 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 information.
Trump pressed Ishiba to close Japan's $68.5 billion yearly trade surplus with Washington but revealed optimism this could be done quickly, provided a promise by Ishiba to bring Japanese investment in the U.S. to $1 trillion.
On Sunday, Ishiba determined liquefied gas, steel, AI and autos as areas that Japanese business could invest in.
He also touched on Trump's guarantee to look at Nippon Steel investing in U.S. Steel, tandme.co.uk rather than purchasing the storied American company - a planned purchase opposed by Trump and blocked by his predecessor, Joe Biden.
"Investment is being made to ensure that it remains an American business. It will continue to operate under American management, with American employees," Ishiba said. "The essential point is how to ensure it remains an American business. From President Trump's point of view, this is of utmost significance."
On military costs, another area where Trump has actually pressed allies for increases, Ishiba said Japan would not increase its defence spending plan without first winning public backing. "It is essential to make sure that what is deemed necessary is something the taxpayers can comprehend and support," he said. (Reporting by Leika Kihara: Additional reporting by Tim Kelly; Editing by William Mallard)