Trump Is Greeted Royally in Japan As Expectations for the China Trade Truce Increase

Trump is honored in Japan as his five-day Asia visit builds anticipation for a resolution to the US-China trade spat.

Japan welcomed US President Donald Trump with a royal welcome Monday, the most recent stop on his five-day Asia journey to negotiate a trade truce with China.

Arriving in Tokyo, Trump’s longest foreign tour since taking office began with stops in Malaysia, where he announced agreements with four countries in Southeast Asia. He is scheduled to visit South Korea on Thursday to meet with Chinese President Xi Jinping.

According to US officials, negotiators from the two biggest economies in the world came to an agreement on Sunday to halt China’s export restrictions and higher U.S. tariffs on rare earths. The news caused Asian markets to leap to all-time highs.

Trump told reporters on Air Force One just before landing in Tokyo, “I think we’re going to come away with a deal, and I have a lot of respect for President Xi.”

After shaking hands with Japanese authorities upon his arrival, Trump, dressed in a blue suit and gold tie, was taken by helicopter for a picturesque nighttime tour of Tokyo. After his motorcade arrived on the grounds of the Imperial Palace, he met Emperor Naruhito.

In an effort to strengthen ties with Washington, Japan’s recently elected prime minister, Sanae Takaichi, who was elected last week as the nation’s first female premier, is anticipated to make new trade and investment pledges.

Takaichi, who was a close ally of Trump’s late friend and former prime minister Shinzo Abe, told Trump over the phone on Saturday that her “top priority” was to fortify the US-Japan partnership.

Trump expressed his excitement about seeing Takaichi, saying, “I think she’s going to be great.”

Japan has promised a $550 billion investment package in return for the lifting of US import duties, according to sources. In addition, Takaichi is anticipated to announce a new shipbuilding partnership and purchases of American petroleum, soybeans, and pickup trucks.

A working lunch is scheduled for Monday between Japanese counterpart Ryosei Akazawa, who mediated the July tariff agreement, and Commerce Secretary Howard Lutnick. Alongside Trump, Treasury Secretary Scott Bessent and Secretary of State Marco Rubio will meet with their Japanese counterparts.

Tuesday’s crucial diplomatic meeting will take place at Akasaka Palace, where Trump will be met by a military honor guard prior to formal negotiations with Takaichi.

In addition, Takaichi is anticipated to reiterate Japan’s willingness to increase its defense capabilities after informing lawmakers on Friday that her administration intends to expedite the nation’s biggest military build-up since World War Two.

The biggest concentration of US military forces overseas is presently located in Japan. Trump has already called on Tokyo to increase its defense budget in light of China’s expanding regional sway.

As her ruling coalition does not have a parliamentary majority, political observers think Takaichi may find it difficult to commit to additional hikes, even though she wants to expand defense spending to 2 percent of GDP.

Trump will depart Japan on Wednesday and travel to Gyeongju, South Korea, where he will meet with President Lee Jae Myung and then Xi Jinping later this week.

Months of increased trade tensions between Washington and Beijing, including tariffs and limitations on vital technologies and commodities, have preceded Thursday’s meeting with Xi.

Ahead of Trump’s scheduled trip to China in early 2019, both parties have moderated expectations for a breakthrough, with talks centered on resolving differences and aiming for modest progress.