President Donald Trump proposed finding a middle ground to resolve the ongoing dispute over Japan’s Nippon Steel’s attempt to acquire U.S. Steel after meeting with Japanese Prime Minister Shigeru Ishiba on Friday. Trump praised Ishiba as a “great leader” and suggested reframing the deal as an investment rather than a purchase, though he did not elaborate on the specifics. Trump announced plans to mediate between U.S. Steel and the Japanese investors next week. The acquisition had previously been blocked by former President Joe Biden, who argued that a robust steel industry is vital to U.S. national security and economic resilience.
Amid growing concerns about America’s reliability as an ally, Trump emphasized the strength of the U.S.-Japan relationship, speaking highly of Ishiba and reaffirming the U.S. commitment to Japan’s security. During a press conference in the East Room, Trump presented Ishiba with a photo of their Oval Office meeting and pledged to deepen economic ties. “He’s got the qualities of greatness,” Trump said of Ishiba, whose governing coalition recently collapsed.
Ishiba, seeking to bolster his political standing at home, arrived at the White House with promises to increase Japanese investment in the U.S., collaborate on AI, semiconductors, and defense, and address the trade deficit favoring Japan. When asked about his first impressions of Trump, Ishiba described him as “intimidating” on television but “powerful” and “sincere” in person, clarifying that he wasn’t “sucking up.”
Trump announced plans to sign a memorandum on reciprocal trade next week and expressed satisfaction with Ishiba’s pledge to invest an additional $1 trillion in the U.S. and help resolve the U.S. Steel deal in a way that benefits both nations. “We have a trade deficit of over $100 billion, but we’re going to work that out, I think very quickly,” Trump said, highlighting Japanese corporate investments, increased defense spending, and plans to import more American liquefied natural gas.
Trump also vowed to use “the full strength of American deterrence” to maintain security in the Indo-Pacific, emphasizing closer cooperation with Japan to counter Chinese economic aggression. For Ishiba, the meeting’s success lay in avoiding new provocations rather than securing concrete commitments. Trump did not threaten new tariffs or suggest annexing Japanese territory, as he has with other allies, and he appeared supportive of Japan’s trilateral relationship with South Korea. The U.S. also reaffirmed its military presence in Japan.
While Trump did not rule out future tariffs if the trade imbalance persists, he expressed confidence that Japan would address the issue. “I don’t think it will be any problem,” he said. “They want fairness also.” When asked about resuming talks with North Korean leader Kim Jong Un, Trump expressed enthusiasm, stating, “We will have relations with North Korea, with Kim Jong Un. I get along with him very well.”
Ishiba’s team, anticipating Trump’s unpredictability, opted against a pre-prepared statement and instead held a brainstorming session to prepare for potential U.S. demands. They created a data graphic showcasing Japan’s role as the top foreign investor in the U.S., highlighting its economic contributions in key states, many of which lean Republican.
Ishiba’s approach mirrored that of former Prime Minister Shinzo Abe, who cultivated a strong personal relationship with Trump. Abe, who was assassinated in 2022, had gifted Trump, joined him for golf and sumo wrestling, and arranged for him to present a trophy at a sumo tournament during his 2019 visit to Japan. Abe’s efforts, combined with significant defense commitments, helped Japan avoid a trade war after Trump withdrew from a multilateral Indo-Pacific trade agreement negotiated by the Obama administration.
When Trump hinted that tariffs might still be considered, Ishiba remained composed, stating, “If it is mutually beneficial, tariffs should be set.” Pressed on whether Japan would retaliate if the U.S. imposed tariffs, Ishiba declined to speculate, saying, “I am unable to respond to a theoretical question.” Trump, smiling, praised the response: “That’s a very good answer. He knows what he’s doing.”
