Trump and Shigeru Ishiba to meet next week; Japan may make concessions to ease trade tensions.

On January 31,Forex Group Official Website Forex Platform US President Trump announced that he will hold talks with incoming Japanese Prime Minister Shigeru Ishiba next week. According to informed sources, the Japanese government plans to make certain concessions in areas such as energy and defense to avoid new trade friction with the United States.

Meeting Scheduled for February 7, Japan Seeks to Ease Trade Tensions

According to Reuters, the meeting is expected to take place at the White House on February 7 (Friday). Trump told reporters in the Oval Office, “They will come to talk with me, and I look forward to it.”

Informed sources revealed that Ishiba hopes to establish a closer personal relationship during Trump's second term and plans to emphasize the jobs created by Japanese companies in the United States during the talks, while also committing to increasing Japan’s defense budget to demonstrate support for the US.

Japan Considers Supporting US Gas Pipeline Project

To further ease US-Japan trade relations, Japan is considering supporting a $44 billion gas pipeline located in Alaska. Sources say that while the Japanese government holds reservations about the feasibility of the project, Japan might agree to further discussions due to Trump's emphasis on the pipeline's importance to the US economy and national security, showing a willingness to cooperate.

Additionally, Japan might make more economic concessions, including increasing US gas purchases, raising defense spending, and expanding manufacturing investments in the US, to reduce its approximately $56 billion trade surplus with the US and avoid additional tariffs.

Trump Pressuring Global Companies to Invest in the US

The Trump administration has been advocating for the return of manufacturing and has repeatedly threatened to impose tariffs on foreign companies. On January 23, during a video speech at the World Economic Forum 2025 Annual Meeting, Trump reiterated that companies not producing products in the US would face “hundreds of billions or even trillions of dollars” in tariffs. He emphasized that the US wants global companies to shift production to the US, or else face varying tariffs, generating significant revenue for the US Treasury.

As the Trump administration’s stance on trade policy becomes increasingly assertive, Japan is likely to further seek consensus with the US in this meeting to reduce future trade conflict risks.

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