Trump Pressures Japan on Tariffs and Defense Spending: "The Bill Will Arrive Soon"

Japan Faces Growing Concerns Over Increased Defense Budget and U.S. Tariff Demands

U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba held their first bilateral summit in Washington, D.C., on February 7, marking a pivotal moment in U.S.-Japan relations. As anticipated, Trump emphasized his administration's demands regarding Japan's defense spending and the trade imbalance, signaling that a formal "bill" addressing these issues would soon be presented to Tokyo.

During the summit, Trump refrained from disclosing specific figures or timelines but indicated that Japan should brace for upcoming financial demands. Japanese media, including the Yomiuri Shimbun, reported extensively on the meeting, focusing on Trump's firm stance on increasing Japan's defense budget and addressing trade tariffs.

Trump highlighted that Japan had agreed to double its defense spending by the 2027 fiscal year compared to the levels during his first term. "Today's discussions will likely lead to further increases," he stated, subtly pressuring Japan to commit to even higher military expenditures. Since revising its three key security documents in 2022, Japan has been gradually increasing its defense budget, aiming to reach 2% of its GDP by 2027. This adjustment translates to approximately 43 trillion yen (about 40 trillion Korean won) allocated for defense over five years.

For the 2024 fiscal year, Japan has already set a record-high defense budget of 8.67 trillion yen (approximately 80 trillion Korean won), surpassing the 8 trillion yen mark for the first time. This sharp rise underscores Japan's strategic pivot towards bolstering its military capabilities amid regional security concerns.

In addition to defense spending, Trump addressed the persistent U.S.-Japan trade imbalance, claiming that the U.S. faces a trade deficit exceeding $100 billion (around 146 trillion Korean won) with Japan. This figure significantly overshoots the actual deficit of $68.5 billion (approximately 100 trillion Korean won) recorded last year, suggesting Trump's intent to amplify the urgency of the issue. "We will address this trade imbalance very swiftly," Trump asserted, reinforcing his administration's aggressive trade policy.

When questioned about potential tariffs on Japanese goods, Trump confirmed plans to impose tariffs, emphasizing that they would primarily be reciprocal. He announced that detailed measures regarding reciprocal tariffs on multiple countries would be revealed early next week. Japanese Prime Minister Ishiba responded cautiously to inquiries about retaliatory tariffs, adhering to Japanese parliamentary norms by stating, "It is customary not to answer hypothetical questions," eliciting laughter during the press conference. Trump praised Ishiba's diplomatic tact, remarking, "That’s a very good answer. The Prime Minister knows exactly what he needs to do."

Moreover, Trump underscored his administration's role in influencing Japan's defense policy shifts. He announced a newly approved foreign military sale (FMS) agreement, enabling the U.S. to sell $1 billion (approximately 1.4565 trillion Korean won) worth of military equipment to Japan. This deal reflects the growing defense ties between the two nations, with the U.S. keen on expanding its arms sales under the FMS program.

In their joint statement, both leaders affirmed their commitment to strengthening the U.S.-Japan alliance. The statement highlighted the U.S.'s support for Japan's defense budget increase and its determination to establish robust self-defense capabilities by 2027. Furthermore, Japan pledged to fundamentally enhance its defense posture beyond 2027, reinforcing its role as a key security partner in the Indo-Pacific region.

As Japan navigates these escalating demands from the U.S., it faces a complex balancing act—managing rising defense costs, mitigating trade pressures, and maintaining domestic political stability amid shifting geopolitical dynamics.