WASHINGTON:
President Donald Trump on Friday pushed Japan to invest in US energy and technology, showered his closest Asian ally with praise and sought a way out of a dispute over a Japanese bid for US Steel during Prime Minister Shigeru Ishiba’s first White House visit.
Trump announced progress on Nippon Steel’s blocked $14.9 billion attempt to take over US Steel, which he has long opposed.
Trump said Nippon was now looking at an “investment not a purchase,” and added, “I’m okay with that, sure.” US Steel shares traded down about 6%. The companies did not comment, although two sources close to the deal told Reuters Nippon Steel had not withdrawn its bid to buy the US firm.
The US-Japan talks come as escalating trade tensions in the aftermath of Trump’s January inauguration threaten to rupture the global economy. On Friday, Trump unveiled plans next week to impose reciprocal tariffs on many countries. It was unclear if they would apply to Japan.
Trump pressed for Tokyo to close its $68.5 billion trade surplus with Washington but expressed optimism this could be done quickly, given a promise by Ishiba to bring Japanese investment in the US to $1 trillion as well as new purchases of US-produced liquefied natural gas, ethanol and ammonia.
Japan had the largest foreign direct investment position in the United States in 2023 with $783.3 billion, followed by Canada, and Germany.
In a press conference, Trump also said the Japanese had expressed interest in a $44 billion gas pipeline in Alaska, but a Japanese official privately told Reuters they still nursed doubts about the project’s viability.
Trump told reporters the countries would work together to get US trade deficit with Japan down to “even” from its current level.
Ishiba highlighted investment plans by Japanese firms Toyota and Isuzu. Asked about the possibility of tariffs, Ishiba said he was “unable to respond to a theoretical question.”
Trump’s early fight with China over synthetic opioids and warnings of tariffs against other countries – Japan included – have threatened to disrupt commercial relations in Asia and beyond.
Trump spoke to Chinese President Xi Jinping days before taking office and has said he will discuss tariffs with him soon.
Japan is especially trade-dependent. A major exporter, it counts on imports for much of its food and natural resources, and many of its firms are deeply invested in and reliant on China.
