Headlines:
- Defense Under Secretary Colby visits Japan to brief new strategy
- Japan 1st to join US “Genesis Mission” but S&T agreement lapses
- Yen-Dollar rate in focus as hinted coordination yields stronger Yen
- Trump tariffs boost US steel production, limit Japan goods exports
- Nago mayor wins reelection over opponent of Marine base move
Details:
- US Undersecretary of Defense Colby visited Korea and Japan Jan 26-28 to brief counterparts on the new US National Defense Strategy (from Jan 23). In Tokyo, Colby met with Vice-Minister of Defense Yamato, Vice-Minister of Defense for Int’l Affairs Kano, and Vice-Minister for Foreign Affairs The new US Defense Strategy promotes a “peace through strength” approach to deterrence along the Indo-Pacific’s “First Island Chain” for regional stability relying on greater burden-sharing by allies (among other points such as a reduced US role deterring North Korea). Colby and counterparts discussed Japan’s plans for increased defense spending (among other topics), though Japanese officials said privately that Colby did not make a direct request for a specific spending target. Meanwhile, Japan-Korea defense ministerial talks occurred in Yokosuka Jan 30 and will include a visit to US 7th Fleet HQ by ROK Defense Minister Ahn.
- Japan and the US signed a “statement of intent” on Jan 27 to collaborate on accelerating scientific research through artificial intelligence (AI) under the new US “Genesis Mission” announced last November. Japan will be the 1st international partner in this US program that leverages the nation’s supercomputing network and vast data sets to build a new AI platform for research in biotechnology, nuclear fusion energy, quantum computing, and other fields. The agreement between the Dept of Energy and Japan’s MEXT links to a four-party collaboration of the US Argonne Nat’l Laboratory and Nvidia Corporation with Japan’s RIKEN laboratory and Fujitsu. Meanwhile, the foundational 1988 science and technology research cooperation agreement signed by President Reagan and PM Takeshita officially lapsed this month after an 18-month extension. Officials tell us they are working to restore the agreement.
- The Japanese Yen strengthened and US dollar weakened as reports emerged of a “rate check” by US Federal Reserve officials Jan 23, hinting at possible future US-Japan action to intervene in markets in support of a stronger Yen. US Treasury Secretary Bessent denied intervention, while a Japan official said the allies will coordinate closely “as needed.”
- US crude steel production exceeded Japan’s in 2025 for the first time in 26 years, while Japan’s exports to the US fell to the lowest level since 2011 (excluding pandemic year). Steel demand in the US is up along with prices. A 50% tariff on steel is curbing imports and boosting hot-rolled steel coil prices (for example) to about double the global export price and 30% higher than January 2025. Meanwhile, Japan’s overall exports of goods to the US dropped by 4.1% in 2025. Separately, Mitsubishi Corp announced a $7.5 billion acquisition of US shale gas assets from Aethon Energy Mgt.
- Incumbent mayor Toguchi of Nago City won a local election on Jan 25 to earn a 3rd term as leader of this municipality in North-Central Okinawa that includes the future site of a relocated US Marine Corps base from Okinawa’s capital, Naha. Toguchi has supported environmentally responsible regional development without specifically endorsing the relocation of Marine Corps Air Station Futenma, although he was supported by national parties that support the move. Toguchi’s opponent, Onaga, ran against the relocation, but his vote total was almost doubled by Toguchi.
“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 dhinkley@spfusa.org.
