In a bid to strengthen diplomatic ties and address complex trade issues, Japanese politician Shigeru Ishiba made "every possible preparation" for his recent meeting with former U.S. President Donald Trump. The meeting, held in Washington, aimed to cement Japan's relationship with the United States, its primary foreign partner. Ishiba sought crucial advice from the widow of former Prime Minister Shinzo Abe and his predecessor, Fumio Kishida, to ensure the success of this high-stakes encounter.
Japan has consistently been the leading foreign investor in the United States for five consecutive years. Japanese companies continue to play a pivotal role in the U.S. economy, especially as the largest job creators in ten states and the second-largest in another six. In Kentucky alone, these companies employ more than 45,000 people. Despite this robust economic presence, recent developments have cast shadows over this harmonious partnership.
During the meeting, Trump mistakenly referred to Nippon Steel as "Nissan," hinting at the complexities surrounding the ongoing trade negotiations. He announced that Japan's Nippon Steel would abandon its $14.9 billion bid to acquire U.S. Steel after the Biden administration blocked the purchase due to concerns over domestic ownership. Trump expressed his willingness to meet with Nippon's head next week to "mediate and arbitrate" the deal.
"But when I met with him, he was very sincere. And very powerful. And of very strong will." – Donald Trump
Ishiba declined to comment on the potential for U.S. tariffs and counter-tariffs, leaving uncertainty in the air. The Japanese government had previously labeled President Biden's decision to block the merger as "incomprehensible," and tensions have since escalated with Nippon and U.S. Steel filing a lawsuit.
The primary goal of Ishiba's visit was to forge a personal relationship with Trump, reflecting Japan's strategic approach to navigating international trade dynamics. While Trump hinted that tariffs against Japan might still be possible, he also expressed optimism that the $68 billion U.S. trade deficit with Japan could be addressed.