We have a strong sense that Trump’s efforts at persuasion will have little impact on the US trade deficit with Japan. Indeed, we suspect that Abe is following the traditional approach of listening carefully, repsonding politely and carrying on regardless.
The first stage of Donald Trump’s five-nation tour of Asia began well with the President playing golf with Prime Minister, Shinzo Abe, describing their relationship as “really extraordinary”.
This suggested progress following the awkward moment during their previous meeting in February 2017. Abe was the first foreign leader Trump met after his election victory and Trump was mocked on social media after refusing to give Abe his hand back during their 19-second handshake. Today their budding relationship was tested as Trump lashed out at Japan’s unfair trade practices and his related attempts at humour. In rhetoric that sounded familiar to his campaign speeches Trump complained that Japan has been “winning” on trade, alluding to the $69 billion trade deficit in 2016.
“We want fair and open trade. But right now, our trade with Japan is not fair and it’s not open. The US has suffered massive trade deficits with Japan for many, many years.
One way that Trump is aiming to fix the trade deficit by making it easier for Japanese companies to do business in the US. However, his decision to highlight the auto industry was perhaps unfortunate. Nonetheless, Trump lamented.
“Many millions of cars are sold by Japan into the United States, whereas virtually no cars go from the US into Japan… Try building your cars in the United States instead of shipping them over. That’s not too much to ask. Is that rude to ask? ”
Last year Japanese automakers manufactured approximately 4.2 million cars and 4.5 million engines in the US, so the criticism was somewhat unjustified. Besides Japanese companies making more products in the US, Trump is keen to gain better access for US companies in Japanese markets. He stated.
“As president, I‘m committed to achieving fair, free, and reciprocal trading relationship. We seek equal and reliable access for American exports to Japan’s markets in order to eliminate our chronic trade imbalances and deficits with Japan. ”
On that note, Trump had some words of advice for the Japanese leader for reducing the deficit by buying US missiles to combat North Korea. As Reuters notes.
Trump also pressed Japan to lower its trade deficit with the United States and buy more U. S. military hardware.
“He (Abe) will shoot them out of the sky when he completes the purchase of lots of additional military equipment from the United States,“ Trump said, referring to the North Korean missiles.
”The prime minister is going to be purchasing massive amounts of military equipment, as he should.
