In the East Room behind two lecterns, Ishiba and Trump shared similar stances in diplomatic, military, economic and energy issues.

Trump declared it a “great friendship” between two superpowers that will “continue to flourish.” Ishiba, who invited Trump to his country, said the United States is the “most important country for Japan’s diplomacy” and affirmed its defense capabilities with plans to double spending.

The meeting between Trump and one of the United States’ strongest allies in the Indo-Pacific region focused on economic and security issues along the theme of “a free and open Indo-Pacific” against tightening military control by China and the strength of North Korea.

After the news conference, the the Dow Jones Industrial Average fell 400 points, or 0.9%. The S&P 500 fell 0.9% and Nasdaq Composite Index was 1.4% lower.

Economics and trade

The United States has a $57 billion trade deficit with Japan with $84.95 billion exports from the United States and $141.52 billion imports in 2024, according to United Nations COMTRADE database.

Trump said he will announce reciprocal tariffs on many countries next week. During a meeting with reporters earlier, he said he backs them “so that we’re treated evenly with other countries.”

Trump, who didn’t name the countries, said additional levies would help shrink the nation’s budget deficit.

“I made clear that the United States will be conducting trade with all countries based on the principle of fairness and reciprocity,” the president said at the news conference. “Chronic trade deficits not only undermine our economy — they really do — … we have a trade deficit with Japan of over $100 billion, but we’re going to work that out, and I think very quickly, frankly. We can do that just on oil and gas, we can work it out.”

Japan has a 4.3% tariff on all products imported and the European Union is at 5.5%.

Ishiba said he wants to dissuade Trump from placing any additional tariffs on Japanese goods.

Trump has imposed a 10% tariff on Chinese goods, and he has paused 25% tariffs on Canada and Mexico for one month.

Nippon Steel’s attempted purchase of U.S. Steel has been a sticking point in the talks. Japan’s flagship steel company had a deal to purchase U.S. Steel despite bipartisan rejection of the deal. Trump opposed the deal on the campaign trail and President Joe Biden blocked it.

U.S. Steel is currently suing to keep the deal alive.

“[Nippon] is going to be doing something very exciting about U.S. Steel,” Trump said. “They will be looking at an investment rather than a purchase. U.S. Steel is a very important company to us.

“It was the greatest company in the world for 15 years, many years ago, 80 years ago. We didn’t want to see that leave, and it wouldn’t actually leave, but that concept psychologically not good. So they have agreed to invest heavily in U.S. Steel as opposed to own it and that sounds very exciting.”

The U.S. president said he would meet with the head of Nippon Steel next week and would be available “to mediate and arbitrate.” He mistakenly called the company “Nissan,” which is an automaker.

The president announced Japan would be taking in new shipments of American liquified natural gas or LNG “in record numbers.”

Trump has lumped Japan into the group of wealthy countries that he has complained have taken advantage of the United States by building up large trade deficits to their advantage and not spending enough for vital U.S. military aid and assistance.

Trump said he spoke “long and hard” with Ishiba about their economic and trade relationship.

In the past, tariffs have historically contributed only about 2% of annual U.S. government revenues.

Spending on defense

“The military cooperation between the United States and Japan is one of our closest security partnerships, and it’s one of the closest we have anywhere in the world,” Trump said at the news conference.

Japan has agreed to double its military spending, Trump said.

Trump has lumped Japan into the group of wealthy countries that he has complained have taken advantage of the United States by building up large trade deficits to their advantage and not spending enough for vital U.S. military aid and assistance.

Trump has insisted its allies spend 5% of its gross national budget on defense spending. Japan, with a $59 billion, is 1.6%, with the United States at 34% and the NATO target is 2%.

The two nations conduct joint military exercises.

There are approximately 55,000 active-duty American troops in Japan, and U.S. aircraft carriers are in the region. The USS George Washington is at its home port in the Tokyo area.

North Korea

President Donald Trump said he wants to resume a relationship with North Korean leader Kim Jong Un in his second term in office.

“I can tell you that Japan likes the idea because their relationship is not very good with him,” Trump said. “If I can have a relationship with not only him but other people throughout the world where there seem to be difficulties, I think that’s a tremendous asset for the world, not just the United States.”

He said that he thinks it would “be great” to resolve issues, which includes denuclearization.

Visits between leaders

The visit was the first by an Asian leader to the White House since Trump’s second administration began in January. He met with Israeli Prime Minister Benjamin Netanyahu on Tuesday.

Ishiba became prime minister on Oct. 1, 2024.

During Trump’s first term, he grew close to then-Japanese Prime Minister Shinzo Abe, bonding over golf. Abe resigned in 2020 and was assassinated two years later.

“We love Japan!” Trump said as he greeted Ishiba and the two shook hands in the Oval Office.

Trump named George Edward Glass to serve as the ambassador to Japan. Glass was an ambassador to Portugal during the president’s first term.