Japan PM Ishiba After Meeting Trump Voices Optimism Over Averting

Ishiba says no talk with Trump on car tariffs at summit


Trump recognises Japan's US substantial financial investment, task production


LNG, steel, AI and autos are locations Japan can buy US


Nippon Steel will operate under US management, personnel


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 could avoid greater U.S. tariffs, stating President Donald Trump had actually "recognised" Japan's big financial investment in the U.S. and the American tasks that it creates.


At his very first White House top on Friday, Ishiba informed public broadcaster NHK, he explained to Trump the number of Japanese automakers were developing jobs in the United States.


The two did not specifically go over car tariffs, Ishiba said, although he said he did not understand whether Japan would be subject to the mutual tariffs that Trump has actually said he prepares to trouble imports.


Tokyo has up until now escaped the trade war Trump let loose in his first weeks in office. He has announced tariffs on items from Canada, visualchemy.gallery Mexico and China, although he held off the 25% responsibilities on his North American neighbours to allow for talks.


The intensifying trade stress since Trump returned to the White House on January 20 threaten to burst the global economy.


Ishiba said he believes Trump "acknowledged the reality Japan has actually been the world's largest financier in the United States for 5 straight years, and is for that reason different from other countries."


"Japan is producing numerous U.S. jobs. I think (Washington) will not go straight to the idea of greater tariffs," he said.


Ishiba voiced optimism that Japan and the U.S. can prevent a tit-for-tat tariff war, stressing that tariffs ought to be put in place in a manner that "advantages both sides".


"Any action that exploits or leaves out the other side will not last," Ishiba said. "The concern is whether there is any issue in between Japan and the United States that necessitates imposing greater tariffs," he added.


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 pressed Ishiba to close Japan's $68.5 billion annual trade surplus with Washington but expressed optimism this could be done rapidly, offered a promise by Ishiba to bring Japanese financial investment in the U.S. to $1 trillion.


On Sunday, Ishiba determined melted gas, steel, AI and autos as locations that Japanese business might purchase.


He also discussed Trump's guarantee to look at Nippon Steel investing in U.S. Steel, instead of purchasing the storied American company - a planned purchase opposed by Trump and blocked by his predecessor, Joe Biden.


"Investment is being made to guarantee that it remains an American business. It will continue to run under American management, with American workers," Ishiba said. "The crucial point is how to guarantee it remains an American business. From President Trump's viewpoint, this is of utmost significance."


On military costs, another location where Trump has pressed allies for boosts, Ishiba said Japan would not increase its plan without very first winning public backing. "It is important to guarantee that what is considered required is something the taxpayers can understand and support," he said. (Reporting by Leika Kihara: Additional reporting by Tim Kelly; Editing by William Mallard)