ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
The Trump effect

'It's not fair,' Trump says of Japanese auto trade

New president looks to negotiate away the US trade deficit

WASHINGTON -- U.S. President Donald Trump on Monday said Japan was engaging in unfair practices on auto imports and exports, a topic that could come up when he meets Japanese Prime Minister Shinzo Abe as early as February.

Trump spoke with chief executives of Ford Motor, defense contractor Lockheed Martin, Dow Chemical and other major American corporations at the White House.

"If, as an example, we sell a car into Japan and they do things to us that make it impossible to sell cars in Japan ... we have to all talk about that," he said. "It's not fair."

While Japan imposes no tariffs on U.S.-made cars, the U.S. levies a 2.5% import tax on Japanese vehicles. But American automakers feel that environmental regulations in Japan and other factors still limit their access to the market. Ford logged lackluster sales in the country before its exit last year.

"It's very, very hard" to sell something to China and other countries, Trump said. "What we want is fair trade," he stressed.

The new president is expected to start negotiating with Japan and China toward reducing the trade deficit with these countries. China accounts for about half of the U.S. deficit. Though Japan accounts for less than 10% of the total, it still ranks third after China and Germany.

Trump also threatened a "very major border tax" on companies that move production out of the U.S. and called for greater investment at home. He said he will lower the corporate tax rate to 15-20%, and also promised to scrap at least 75% of existing regulations.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 19th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media