US-Japan Alliance Digest Vol 4.4

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• Secretary of State Rubio met Foreign Ministers Iwaya and Cho for a trilateral meeting on the sidelines of the G7 in Munich Feb 15. In addition to reaffirming their security cooperation commitments, they pledged greater collaboration on energy, economic security, and scientific research, while cautioning against unilateral attempts to change the status quo by force or coercion in the Indo-Pacific, on the Korean peninsula, and across the Taiwan Strait. They also expressed support for Taiwan’s meaningful participation in appropriate international organizations. A separate report outlined four specific collaboration projects: two in the energy field involving hydrogen; computing; and surveillance, positioning and sensors through an initiative by ten research institutions from the three countries in FY25.
• METI Minister Muto discussed impending US tariffs with industry executives on Feb 25. Mr. Muto is expected to visit Washington in March to convey concerns and seek exemptions from Trump’s tariffs. Similarly, Japanese chip manufacturer, Rapidus, which aims to mass produce 2 nm semiconductors by 2027, is also seeking an exemption, as they could be critical to the US economy. Japan’s GDP data released Feb 17 showed a fourth month of consecutive export growth led by auto shipments to the US, possibly due to front-loading purchases ahead of possible auto tariffs in April. Yet, US-imposed auto tariffs could run counter to the 2019 US-Japan (Trump-Abe) trade agreement.
• Warships from the US, Japan, and France participated in trilateral exercise Pacific Steller near the Philippines from Feb 10-18. The JS Kaga and JS Akizuki joined aircraft carriers USS Carl Vinson and FS Charles de Gaulle in conducting anti-submarine and anti-aircraft drills. Defense Minister Nakatani said France’s dispatching a carrier to the Indo-Pacific for the first time since the 1960s shows its intentions to be more involved in the region. France is the latest European nation to contribute to deterrence posture in the region as Europe increasingly sees its security interlinked with the Indo-Pacific. North Korean media accused Japan of “threatening the balance of power in the Asia-Pacific region.”
• American, Japanese, and Australian air forces concluded exercise Cope North in Guam on February 21. The exercise involved 62 war planes flying 2400 aerial sorties, supported by 2300 personnel and 10 refueling aircraft from the three countries. The 18-day cross training involved air to air combat and interoperability with allies in multiple aircraft including 5th generation fighters. US Air Force Lt. Col. Trevor Callens said the exercises “enable us to identify and understand the subtle differences in how each country deploys, maintains, and commands these aircraft.”
• Shares in Japanese trading houses jumped 5% on Feb 25 following Berkshire Hathaway CEO Warren Buffet’s annual letter to investors in which he announced more planned investment in those companies. The top five Japanese trading firms; Mitsubishi Corp, Mitsui & Co, Sumitomo Corp, Itochu, and Marubeni all rose following Berkshire Hathaway’s 2020 $6 billion investment and further gains are now expected. Mr. Buffet’s letter indicated that the five trading houses agreed to “moderately relax” limits that capped Berkshire’s ownership stakes below 10 percent.

“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.

Download US-Japan Alliance Digest Vol 4.4