Saturday, 17 January 2026

A trillion dollar gamble to avoid tariffs

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WASHINGTON, DC - FEBRUARY 07: U.S. President Donald Trump shakes hands with Japanese Prime Minister Shigeru Ishiba during a meeting in the Oval Office of the White House on February 07, 2025 in Washington, DC. Shigeru, who took office in October, is the first Asian leader to visit Trump since he returned to the White House last month. During the visit, Shigeru and Trump will participate in a working lunch and a joint news conference Anna Moneymaker/Getty Images/AFP (Photo by Anna Moneymaker / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

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WASHINGTON: Japanese Prime Minister Shigeru Ishiba and US President Donald Trump struck a warm tone in their first meeting on Friday, with Japan avoiding Trump’s tariffs — for now.

At the White House, both leaders vowed to counter Chinese “aggression” and announced a solution for a blocked US Steel deal. 

Trump, however, pushed Ishiba to eliminate the US trade deficit with Japan, warning of potential tariffs if Tokyo fails.

Ishiba, a model warship enthusiast, faces pressure to match Trump’s close ties with his predecessor, Shinzo Abe. 

He called Trump “sincere and powerful” after meeting him, despite his TV persona. 

Trump, in turn, praised Ishiba as “good looking.”

On trade, Trump confirmed that Japan’s Nippon Steel will invest in US Steel rather than acquire it—a deal previously blocked by former President Joe Biden. 

The two leaders also reaffirmed security ties, condemned China’s actions in the South China Sea, and called for a denuclearised North Korea. Japan pledged a $1 trillion investment in the US and increased defense purchases. 

Ishiba, who rushed to Washington to soften Trump’s “America First” stance, emphasised Japan’s role as the largest investor in the US.

Under Abe, Japan had been shielded from Trump’s trade wars. 

Now, with tariffs looming, Ishiba is navigating a delicate balance. 

Trump, who has already imposed tariffs on China and threatened them on Mexico, Canada, and the EU, said he will announce new “reciprocal tariffs” next week. – AFP

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