Ishiba states no talk with Trump on auto tariffs at top

Trump acknowledges Japan’s US huge investment, task production

LNG, steel, AI and automobiles are areas Japan can buy US

Nippon Steel will run under US management, staff

Japan will not raise defence costs without public support

TOKYO, Feb 9 (Reuters) - Japanese Prime Minister Shigeru Ishiba expressed optimism on Sunday that his country might prevent greater U.S. tariffs, saying President Donald Trump had “acknowledged” Japan’s big financial investment in the U.S. and the American tasks that it produces.

At his very first White House top on Friday, Ishiba told public broadcaster NHK, menwiki.men he explained to Trump how numerous Japanese automakers were creating tasks in the United States.

The 2 did not particularly talk about vehicle tariffs, Ishiba said, although he said he did not know whether Japan would go through the mutual tariffs that Trump has actually said he prepares to enforce on imports.

Tokyo has up until now escaped the trade war Trump released in his first weeks in workplace. He has revealed tariffs on items from Canada, Mexico and China, although he held off the 25% duties on his North American neighbours to permit talks.

The escalating trade stress given that Trump went back to the White House on January 20 threaten to rupture the global economy.

Ishiba said he thinks Trump “acknowledged the fact Japan has actually been the world’s biggest financier in the United States for five straight years, and is for that reason different from other countries.”

“Japan is developing lots of U.S. tasks. I believe (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 need to be put in place in such a way that “benefits both sides”.

“Any action that exploits or omits the opposite will not last,” Ishiba said. “The concern is whether there is any issue in between Japan and the United States that requires 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 pushed Ishiba to close Japan’s $68.5 billion yearly trade surplus with Washington however expressed optimism this might be done rapidly, given a pledge by Ishiba to bring Japanese financial investment in the U.S. to $1 trillion.

On Sunday, Ishiba recognized melted natural gas, steel, AI and automobiles as locations that Japanese companies might buy.

He likewise discussed Trump’s promise to look at Nippon Steel investing in U.S. Steel, as opposed to buying the storied American company - a planned purchase opposed by Trump and obstructed 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 workers,” Ishiba said. “The bottom line is how to guarantee it remains an American business. From President Trump’s perspective, this is of utmost significance.”

On military costs, another location 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 important to guarantee that what is deemed required is something the taxpayers can understand and support,” he said. (Reporting by Leika Kihara: Additional reporting by Tim Kelly