During a ceremonial visit, United States President Donald Trump called out Japan’s trade advantages, adding encouragements for Japanese investors to place more assets in the U.S. According to The Japan Times, the U.S. is trying to even out Japan’s edge on trade through negotiations.
Addressing a group of Japan’s top business leaders, Trump said that ‘there has never been a better time to invest in the U.S.’ He also mentioned his intentions to resolve the imbalance in the trade relations between the two countries. This move was taken to ‘ensure fairness and reciprocity.’ It also intends to eliminate barriers faced by American exports.
The President also revealed that the two countries are near to closing a deal, which seeks to settle the trade deficits on the part of the U.S, says CNBC. This refers to the country’s 2018 deficit amounting to $56.8 billion in goods and services with Japan.
The visit aims to emphasize the strong relationship of the U.S. and Japan, even with tensions happening with regards to trade. Trump and Japanese Prime Minister Shinzo Abe are known to have a good relationship.
PM Abe seeks to highlight this positive relationship in light of the U.S.’ intention to impose taxes on Japanese carmaker Toyota’s auto exports from Japan. This tax-related move is due to the U.S. President’s view on Japanese car exports as a ‘potential national security threat,’ which prompted the auto company to release a statement saying that the message implies that its investments are unwelcomed.
In the visit, Trump acknowledged Toyota’s investments and urged Japanese firms to invest more in the U.S.
Meanwhile, the U.S. is also undergoing trade tensions with China, as a stand against the perceived unfavourable treatment of American firms by China. The U.S. is also facing tensions with the European Union due to threats of imposing tariffs.
