US-Japan Alliance Digest Vol 4.3

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Details:

• President Trump hosted Prime Minister Ishiba at the White House Feb 7 for their first meeting. The leaders covered deepening economic ties, cross-domain security, developing multilateral relations, and technological partnerships. They committed to “pursue a new golden age for US-Japan relations that upholds a free and open Indo-Pacific and brings peace and prosperity.” This includes “increasing bilateral presence in Japan’s Southwest Islands” and pledges to “promote business opportunities and significantly increase bilateral investment…jointly promote growth in the Indo-Pacific region…[and] advance multilayered and aligned cooperation among like-minded countries.” Ishiba pledged more defense spending and imports of US natural gas. Together they opposed “any attempts by the People’s Republic of China to change the status quo by force or coercion in the East China Sea” or for cross-Taiwan Strait issues.
• Following the Oval Office meeting with PM Ishiba, Trump announced that Nippon Steel’s planned purchase of US Steel could shift to “investment.” He said foreign ownership of US Steel was “psychologically, not good,” but a big investment would be “exciting.” While Nippon Steel said it has no plan to change the acquisition structure, Trump said he would meet with the company and be involved “to mediate and arbitrate.” He added that he wanted to slash the $68 bn trade deficit with Japan without punitive action, but on Feb 11 ordered higher tariffs (to 25%) on imported steel and aluminum from all countries including Japan. Japan requested an exemption from the new tariffs.
• President Trump and Prime Minister Ishiba also announced that Japan would begin importing a record amount of liquid natural gas (LNG) from the US, and Trump suggested a possible US-Japan joint venture to develop a $44 billion 800-mile Alaskan LNG pipeline from the North Slope to Nikiski. Japan’s Mitsui trading company has said that it is studying the project, which could be more expensive than other LNG sources and would not be ready to export until at least 2031. Ishiba added that both countries would vigorously promote efforts to harness the energy of the growing market in the Indo-Pacific region and cooperate to reinforce energy security between Japan and the US.
• A US Space Force space domain awareness payload was launched into orbit by JAXA’s H-3 rocket from Kagoshima Feb 2. The joint effort was a first for the alliance as the satellite delivers near real time data to help the bolster Indo-Pacific security. The program’s executive officer said, “In an increasingly contested space domain, Japan’s contribution to the US DoD’s deterrence strategy has been…key to INDOPACOM awareness and operations.” Separately, the Trump-Ishiba joint statement stated that they would boost space collaboration via the Crew-10 mission to the ISS and Artemis lunar surface exploration missions. The Crew-10 mission includes astronauts from both countries.
• Life insurer Meiji Yasuda announced Feb 7 that it would acquire US-based insurer Banner Life Insurance for $2.3 billion. The deal, set to be completed by March 2026, is part of a 5% equity buy in to Britain’s finance firm Legal & General. This is the latest move by a Japanese insurer in diversifying away from its shrinking life insurance market.

“US-Japan Alliance Digest” is a bi-weekly summary of bilateral and related developments compiled by Sasakawa USA’s “US-Japan NEXT Alliance Initiative.” To receive “Alliance Digest” via email, contact egulum@spfusa.org.