OSAKA, Japan — President Donald Trump on Friday praised Japanese automakers for making increased investment in the United States, in a possible sign that Tokyo could escape U.S. national security tariffs on the country’s auto exports.
“I appreciate the fact that you're sending many automobile companies into Michigan, and Ohio, and Pennsylvania, and North Carolina,” Trump said during a meeting with Japanese Prime Minister Shinzo Abe.
Both men are here in Osaka for the annual Group of 20 leaders‘ summit, which Abe is hosting this year. To underscore Trump’s point, the White House distributed a glossy map showing that Japan has made “FIVE Additional Investments in JUST ONE MONTH.”
“I see they're building all over the United States, a lot of the great Japanese car companies — and other Japanese companies also,” Trump said. “They're coming in and they're building magnificent plants. We haven’t had that, and we very much appreciate it.”
In reality, Japanese automakers have making cars in the United States for decades. Toyota alone estimates it has invested over $60 billion in U.S. facilities supporting a workforce of over 475,000 direct and indirect employees at its manufacturing plants, car dealerships and other operations.
American consumers benefit from increased competition, higher quality and lower prices as a result of auto imports. However, a big portion of the $67 billion U.S. trade deficit with Japan is in the auto sector, and Trump’s Commerce Department recently concluded auto imports pose a national security threat to the United States.
Last month, Trump signed a proclamation delaying a decision over whether to impose tariffs on imports of autos and auto parts for another six months to give the United States time to negotiate trade deals with Japan, the European Union and potentially other auto exporters.
Trump‘s praise stands in contrast to the language of his May 17 proclamation, which emphasized the administration’s preference for “American-owned” auto production.
That prompted a sharp response from Toyota. The president’s decree “sends a message to Toyota that our investments are not welcomed, and the contributions from each of our employees across America are not valued," the automaker said in a statement at the time.
During a portion of the Abe meeting open to the press, Trump shrugged off a question about tariffs, telling reporters he expected a “positive” meeting.
Trump’s softer tone appears to reflect that Abe and Japanese automakers’ efforts to change the president’s thinking is having some effect.
In addition, Trump is eager for a deal with Japan to level the playing field for U.S. farmers who are facing lost market share in that country as a result of his decision to withdraw from the Trans-Pacific Partnership pact.
U.S. Trade Representative Robert Lighthizer, who is also in Osaka for the G-20 leaders summit, recently told members of Congress he hopes to reach an agricultural-only trade deal with Japan in the coming weeks and months.
Trump seemed to share that optimism on Friday. “We also are going to be announcing some very big trade transactions, very big trade deals,” he said.
However, Abe is unlikely to open Japan’s market to more U.S. agricultural goods if Trump hits Japan’s auto exports with sizable duties.
Article originally published on POLITICO Magazine