News On Japan

Japan's Investment Map for Trump

TOKYO, Feb 04 (News On Japan) - Prime Minister Ishiba, ahead of the US-Japan summit with President Trump, is set to present a specially prepared map showcasing Japanese corporate investments across the United States, a strategic move aimed at emphasizing Japan’s economic contributions while negotiating key issues such as tariffs, defense spending, and security commitments.

While the exact map has not been revealed, an example can be found in materials compiled by the Japan External Trade Organization (JETRO), which clearly illustrates the scale and scope of Japanese investments in the country.

Recent developments underscore Japan’s economic contributions to the US, with SoftBank Group announcing a massive 78 trillion yen investment in AI infrastructure over the next four years. The map Ishiba is expected to present may outline existing and future investments, demonstrating Japan’s significant role in job creation and economic growth in the US. This approach mirrors a previous instance when former Prime Minister Abe presented a similar investment map to Trump, which strongly resonated with the then-president and was later shared on his social media as an achievement under his leadership. The same strategy appears to be at play this time, aiming to highlight Japan’s economic partnership with the US.

The summit is expected to focus on three key issues from Japan’s perspective: tariffs, defense spending, and security commitments. First, Japan seeks assurances that it will not be subjected to the high tariffs imposed on countries like Mexico and Canada. Second, while Japan has already increased its defense budget to 8.7 trillion yen for fiscal 2024, it aims to prevent further demands for increases. Lastly, Japan wants a firm commitment from the US regarding security, particularly in relation to the Senkaku Islands, under the framework of the US-Japan Security Treaty. In return, Japan is expected to express willingness to expand imports of liquefied natural gas (LNG) from the US, reinforcing economic ties.

Trump’s negotiation style has historically intertwined economic policy with security agreements, and Japan is likely to structure its proposals accordingly—offering economic benefits while securing its own strategic interests. Ishiba recently met with SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman at the Prime Minister’s Office, and sources indicate he also held private discussions with Toyota Chairman Akio Toyoda. The meeting with Toyoda is seen as particularly significant given Trump’s past emphasis on the automotive industry. In previous negotiations, Trump strongly criticized the prevalence of German cars in Japan while American vehicles struggled to gain market share. Though Japan successfully avoided auto tariffs at that time, there are expectations that Trump may raise the issue again. If Japanese automakers commit to expanding production facilities in the US, it could be perceived as a major win for Trump, which may explain the behind-the-scenes discussions with Toyota’s leadership.

The negotiations will require a careful balancing act. While Japan seeks to protect its economic and security interests, it must also navigate Trump’s transactional approach to diplomacy. Ishiba will need to ensure Japan secures concrete benefits while pushing back against excessive demands. The previous round of trade negotiations saw Japan successfully resisting harsh conditions, and a similarly tough stance is expected in the upcoming summit.

Source: FNN

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