After Taking Dig at Japan, Trump Sees Trade Deal after Japanese Elections

President Donald Trump tried to set the tone on the first day of his state visit to Japan by firing a shot at Tokyo for what he referred to as a “substantial advantage” in trade and asked Japanese businesses to invest more in the United States.

“Japan has had a substantial advantage for many, many years, but that‘s okay, maybe that’s why you like us so much,” Trump said during a meeting with Japanese business leaders in Tokyo.

Tensions over Potential Auto Tariffs

Before Trumps visit to Japan, he laid the groundwork for tense negotiations by repeatedly threatening Japanese carmakers like Toyota with potential auto tariffs. However, earlier this month, Trump softened his tone by postponing a decision on car levies for up to six months and directed U.S. Trade Representative Robert Lighthizer to seek trade agreements with Tokyo and Brussels.

Trump also made it clear by his actions that he views car imports as a potential threat to U.S. national security. That triggered a terse response from Toyota.

In a strongly worded response to Trump‘s comments, Toyota Motor said Trump’s latest move in the administration‘s international trade war was a “major setback” for American consumers, shows the company’s investments in the U.S. are “not welcomed” and that contributions from its American employees are “not valued.”

The company further added, “Our operations and employees contribute significantly to the American way of life, the U.S. economy and are not a security threat,” Toyota said in its statement.

Trump Softens Initial Tone While Encouraging Investments

After firing a dig at Japan on the first day of his official state visit, President Trump softened his tone while meeting with Japanese business leaders on Saturday in Tokyo. During the meeting Trump recognized Toyota for its investments in the U.S. and called for Japanese businesses to invest more.

“If you join in seizing the incredible opportunities now before us in terms of investing to the United States, I think youre going to see tremendous return on your investments,” he said.

Trade Talks Expected to Go Nowhere

U.S. President Trump and Japan Prime Minister Shinzo Abe are expected to hold a trade summit on Monday, according to Reuters. Going into the meeting, the odds are pretty slim that a deal will be worked out.

Japans economy minister, Toshimitsu Motegi, said he did not expect even a partial agreement on trade to be reached. Motegi met with Lighthizer and told reporters that the U.S. and Japan still need to narrow their differences on trade.

Trump Remains Optimistic

Ahead of the summit, President Trump sounded optimistic that a deal could be reached over the near-term, saying on Monday he expects to get the trade gap with Japan “straightened out rapidly,” adding that announcements on that could come as soon as August, or shortly after Japans July elections.

“Trade-wise, I think we‘ll be announcing some things, probably in August that will be very good for both countries,” Trump said, according to Reuters. “We’ll get the balance of trade, I think, straightened out rapidly.”