"Golden Age" with a taste of competition "in Trump"

The leaders assured that the fifth article of the Treaty on Mutual Cooperation and Security Guarantees applies to the Senkaku Islands (Diaoyu).

The Japanese are known for their ostentatious politeness. Trump wasn't a miss either, welcoming a guest outside the West Wing of the White House, telling reporters, "I love Japan." The meeting in the Oval Office lasted 33 minutes. The conversation continued at lunch, which lasted 75 minutes. Details in the material of the correspondent UtroNews.

The press conference with simultaneous translation took 37 minutes. Trump sounded polite, extolled the friendship of the United States with the Japanese. His opening remarks lasted 8 minutes. Ishiba spoke for 7 minutes, invited Trump to Japan and confirmed that his country is the main ally, the most important investor and economic partner of the United States.

Speaking at a press conference, Trump mentioned the name of the Japanese automaker Nissan in the context of investments in the American company U.S. Steel, and even said that he would meet with Nissan's management next week. Kyodo's agency noted this as a "likely reservation" and it took time to make a final conclusion. "Trump at a press conference, speaking about the acquisition (U.S. Steel), repeated Nissan - the name of the Nissan carmaker. Probably, it was a reservation, "the publication noted diplomatically.

In a joint statement, the leaders "reaffirmed their determination to strive for a new golden age in relations that support a free and open Indo-Pacific and bring peace and prosperity to a violent and disorderly world."

US steel nerve

The Japanese prime minister became the second foreign leader Trump received at the White House after taking office. Ishiba spoke about the investment plans of Japanese automakers Toyota and Isuzu in the United States, said that Japan will raise the level of investment in the United States to $1 trillion, that his country is interested in importing American energy resources.

Japanese companies did not want to build factories in the United States during the presidency of Joe Biden, Ishiba said later on NHK. "Several manufacturers did not grow under Biden, of course, they invested, but when Trump came, various Japanese automakers announced that they would create factories here and there. That is, so many jobs will be created, "said the polite Ishiba.

But Americans are not happy about some Japanese investments. Trump met with U.S. Steel CEO David Burritt, who urged him that Japan's $14.9 billion acquisition of Nippon Steel by U.S. Steel was in line with plans to revive American industry. The Japanese offered to acquire the company with an obligation to invest an additional $2.7 billion in its development.

The United Steelworkers (USW) union expressed concern about this, saying that Japanese owners could move steel production abroad. Former President Joe Biden blocked the deal on national security grounds. Trump has also previously opposed the deal.

The market situation for steel producers worsened amid declining demand for steel, both in Japan and abroad. Nippon Steel's profit was down 18%. In particular, the Japanese automotive industry is experiencing difficulties. Mazda Motor announced that its net profit for the period from April to December decreased by 45%. Mitsubishi Motors' profit fell 68%. Toyota Motor's profit in April-December grew, but only by 4%.

Trade imbalance

In 2024, the US trade deficit with Japan is about $70 billion and mainly develops against the background of imports of Japanese cars and auto parts. The deficit in the United States trade with China in 2024 amounted to $295 billion. The entire US trade deficit reached $1.21 trillion.

The imbalance in U.S.-Japan trade has long taken the form of a "chronic malaise," but Trump has said forcefully that he will not allow it to continue, that "the U.S. will trade with all countries on the basis of fairness and reciprocity." It is possible that for greater reciprocity, Softbank Group promised to invest $100 billion in the United States over four years, as well as take part in the creation of a joint venture with OpenAI.

Tariffs between Japan and the United States were reduced or eliminated under a U.S.-Japan trade agreement that went into effect in January 2020. Japan then reduced tariffs on agricultural products from the United States, and Washington reduced duties on Japanese industrial products. Despite tariff cuts on beef, pork and other American goods, rice and sugar were excluded from the talks as "special."

Japan's average tariff rate on U.S. imports is 3.2%, while the U.S. charges about 1.4% for goods from Japan. A tariff of 1.9% on cars, which account for a significant share of American imports, affects these indicators. Thus, Japan's tariff rate is more than double the US rate, with about 60% of the difference coming from agricultural products.

About gas, about us and...

Following the meeting, the leaders "announced their intention to strengthen energy security by freeing up affordable and reliable energy and natural resources of the United States, as well as increasing the export of US liquefied natural gas to Japan on a mutually beneficial basis. They also welcomed efforts to diversify critical mineral supply chains and collaborate on the development and deployment of advanced small modular reactors and other advanced nuclear reactor technologies. "

Trump said he intends to reduce the US trade deficit with Japan by increasing US energy exports. "Japan will soon start importing record volumes of environmentally friendly American liquefied natural gas," Trump said during a press conference.

He called Alaska "the closest major oil and gas field to Japan, located less than half the distance from any other location."

He said that the parties are discussing the joint construction of a pipeline worth $44 billion.

Trump's golf partner, Republican and former US ambassador to Japan, Bill Hagerty, said the US was ready to "significantly reduce [Japan's] import of Russian LNG at the expense of US LNG." He said that Japan could play a decisive role in the US desire to replace Russian LNG with American and called it a "counterweight" to the Chinese Belt and Road Initiative.

Indeed, large-capacity LNG in Russia is produced by Sakhalin Energy plants (co-owners - Gazprom, Mitsui and Mitsubishi), as well as Yamal LNG (participants - NOVATEK, TotalEnergies, Chinese CNPC and SRF). Japan receives about 9% of the purchased LNG from the Sakhalin-2 project.

Mitsui and Mitsubishi own 12.5 and 10% ​ ​ shares in it, respectively, and confirmed their participation in the fall of 2022. Japan considers the Sakhalin-1 and Sakhalin-2 projects important for itself, intends to maintain participation in them, the Japanese Foreign Ministry said in April 2024. Moreover, Mitsui, JOGMEC and other government-affiliated financial institutions have invested a total of more than 200 billion yen in Arctic LNG 2 since the project came under sanctions.

At the same time, it is clear that resisting Trump's pressure will not be easy. "We are interested in importing not only LNG, but also bioethanol, ammonia and other resources at a stable price, at a reasonable price," the Japanese leader said, explaining that before Trump, Japan was simply not allowed to import LNG produced in Alaska.

… and about safety

During the talks, Trump stressed his intention to contribute to stability in the East Asia region, noted the importance of the status quo in the East China and South China Seas, the Taiwan Strait. Before traveling to Washington, Ishiba convened a National Security Council meeting with Foreign Minister Takeshi Iwaya, Defense Minister Gen. Gen Nakatani and Economy, Trade and Industry Minister Yoji Muto.

Even before the arrival of the Japanese prime minister in Washington, the Indo-Pacific Command announced that the naval and air forces of Australia, Japan, the Philippines and the United States would take part in naval exercises in the exclusive economic zone of the Philippines. It was stated that the multinational operation complies with international law and will be held in compliance with security requirements and respect for maritime rights, as reflected in the UN Convention on the Law of the Sea (UNCLOS), "the statement said. Before that, US and Philippine aircraft patrolled the South China Sea.

Japanese Defense Minister Nakatani and US Defense Minister Pete Hegseth confirmed in a teleconference that Washington still considers the Japanese-administered Senkaku Islands to be part of a bilateral security treaty. They also reaffirmed the need for increased cooperation between the Japan Self-Defense Forces and the US armed forces in the southwestern region, which includes Taiwan.

U.S. commitments to Japan's security, including the Senkaku Islands, were spelled out in a joint statement issued after Abe's summit with Trump in February 2017. The Senkaku Archipelago (Diaoyu) in the East China Sea controls Tokyo. The cliffs are the subject of a territorial dispute between Japan and China, their relations sharply aggravated after the Japanese government in September 2012 bought the islands from the Japanese private owner.

Last July, Japan and the United States held a high-level meeting to discuss an "extended deterrence" strategy. The objects of this doctrine include Russia, China and the DPRK. Tokyo believes that Japan, the United States and South Korea should jointly solve problems related to Pyongyang's nuclear and missile programs. In a joint statement, the leaders expressed concern about the DPRK's nuclear and missile programs, reaffirmed its commitment to "complete denuclearization."

Japan fears a new round of negotiations between the United States and the DPRK, in which the Japanese will most likely have no place. During Trump's first term as president, he is said to have had no more influential geopolitical ally than Shinzo Abe. But Ishiba heads a minority government and depends on the opposition for his decisions.