Trump will meet with Ishiba of Japan while the trade battle with China rages

Friday marks the first meeting between U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba as two allies concerned about China’s ascent seek to strengthen security and commercial relations as a growing trade war threatens to upend the world economy.

Trump, whose first three weeks in office have upended conventions and rocked foreign capitals from Ottawa to Bogota, has adopted a more traditional stance toward Washington’s old allies in the Asia-Pacific region, such as South Korea, Japan, Australia, and the Philippines.

But Trump’s early battle with China over synthetic opioids and threats of tariffs against other nations, like Japan, may put such alliances to the test and jeopardize trade relations in Asia and beyond.

According to a top Trump administration official, the presidents will talk about energy, foreign investment, military training exercises, and enhanced collaboration on defense technologies and equipment.

According to the official, they will also talk about cybersecurity, space exploration, and cooperative commercial prospects in the semiconductor and AI industries.

“Our long and close alliance with Japan is something that the United States is proud of,” the official stated. “Our two nations will continue to work together to ensure we deter threats in the region through our full range of military capabilities,” stated the official.

“We all know that President Trump pays a lot of attention to deficits as an indication of the economic fairness and strength of the relationship so I’m sure discussions will happen about that,” a second senior Trump administration official responded when asked about the U.S. trade deficit with Japan and the possibility of tariffs.

In a “opening salvo” in a conflict between the two biggest economies in the world, Trump imposed a 10% duty on all imports from China, sending firms and consumers reeling to adapt.

Japan is particularly dependent on trade: it is a big exporter, imports a lot of its natural resources and food, and many of its businesses have significant financial ties to and depend on China.

Tokyo agrees with Trump’s national security team’s strong stance on China due to Beijing’s ambitious global goals and broad territorial claims in Asia, including Taiwan, a crucial chip-producing island.

At the same time, Japanese officials are cautious about Beijing’s potential attempts to woo the U.S. president by offering collaboration on important international problems, such as trade. Days before becoming office, Trump met with Chinese President Xi Jinping and promised to speak with him shortly about tariffs.

In private interviews, Japanese officials say they feel at ease dealing with Trump’s China hawks, such as national security Michael Waltz and Secretary of State Marco Rubio, but not with those in the administration who have close business ties to Beijing, like billionaire Elon Musk, who has established a sizable power base in Washington.

On Friday afternoon, Trump and Ishiba are anticipated to hold a joint news conference.

GETTING READY FOR TRUMP DEMANDS

The early White House visit is a positive indication for Tokyo from the Trump administration.

“The Oval Office has received two foreign heads of state,” Biden’s envoy to Tokyo, Rahm Emanuel, stated. “That’s Japan and Israel’s Bibi Netanyahu. Thus, that is a positive indicator and a desirable thing.

Trump has no connection to Ishiba, who became office in October, but he was close to the late Japanese Prime Minister Shinzo Abe. Japanese officials intend to invite Trump to Japan in order to change that.

Japan is bracing for Trump to make demands in order to avoid tariffs and cut the $56 billion bilateral trade imbalance.

Officials told Reuters that Tokyo has been planning certain compromises, including as buying more LNG from the US and supporting a $44 billion gas pipeline in Alaska. A new tab is opened by SoftBank (9984.T).Additionally, CEO Masayoshi Son has committed to spending hundreds of billions of dollars on artificial intelligence in the United States.

According to Kenneth Weinstein, head of the Japan program at the conservative Hudson Institute think tank in Washington, “the Japanese are definitely thinking of ways to both reduce the deficit and create jobs in the United States in industrial sectors that are of particular interest to Donald Trump.”

Beyond trade, disputes exist, such as Japan’s Nippon Steel (5401.T), which wanted to acquire U.S. Steel (X.N), opens new tab. Trump has also pledged to stop the pact, while former President Joe Biden opposed it but postponed enforcement while awaiting legal action.

According to another person acquainted with the talks, there are tangible indications of stability as well, and the two presidents are anticipated to reach a consensus on wording about security matters, such as China and Taiwan.

While the President had expressed his willingness to engage with North Korea, the Trump official pointed out that the administration was dedicated to the country’s full disarmament. Discussions on North Korea are also anticipated. Trump made similar effort during his first term, but it was unsuccessful.