Prime Minister Shinzo Abe appears to have got what he sought from U.S. President Donald Trump on issues related to North Korea: a united position of keeping maximum pressure on Pyongyang to give up its nuclear and missile programs and Trump's promise that the United States would "work very hard" for the return of Japanese abducted to North Korea. The developments came during talks at the president's Mar-a-Lago resort in Florida this week ahead of Trump's planned historic summit with North Korean leader Kim Jong Un. But in stark contrast, Abe and Trump remained far apart on the simmering trade issues. Trump effectively rebuffed Abe's call for the U.S. to return to the Trans-Pacific Partnership and insisted on bilateral talks to cut the U.S. trade deficit with Japan.
Trump said he would not exempt Japan from the recently imposed steel and aluminum import tariffs — as was done for other U.S. key allies and partners — unless a deal is reached with Tokyo to slash the "massive trade deficit with Japan." This week it was reported that Japan's trade surplus expanded 5.7 percent to ¥7 trillion with the U.S. in fiscal 2017. Abe and Trump agreed to begin a new framework of discussions between the two countries for "free, fair and reciprocal" trade, to be led by economy revitalization minister Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer. Concern remains that with midterm elections looming in November, Trump would continue to press Japan for bilateral talks on a free trade deal under terms favorable to American interests.
The Trump administration's protectionist trade policies, as represented by the steel and aluminum tariffs and additional trade sanctions against China on charges of intellectual property violations, have raised the specter of a global chain reaction of trade friction that could slow down worldwide trade and possibly affect Japan's economy, which has benefited greatly from brisk demand in overseas markets. The government should press the U.S. to abandon its protectionist policies and insist that all trade issues be resolved through the multinational framework under World Trade Organization rules.