Japanese Prime Minister Shinzo Abe said he would meet the head of Toyota Motor Corp today, as Tokyo compiles a plan to ward off US criticism of Japanese trade policy before a summit with President Donald Trump next week.
Trump, who has pledged to put America first when it comes to trade, has rattled Japan by criticising the low number of US cars sold in Japan and by demanding that more cars sold in the US be made locally.
Abe, speaking in parliament yesterday, said the meeting was arranged months ago, but this will do little to quell speculation that he will pass on some instructions to Japan’s top automaker about how to avoid Trump’s protectionist ire.
The stakes are high because Japan’s politically powerful auto industry is a major contributor to exports and economic growth. If Trump curbs Japanese auto exports, either from Japan or from plants in Mexico, this could slow Japan’s economy.
“I did not suddenly summon the head of Toyota (because of US criticism),” Abe said.
“This meeting was planned months ago. I cannot tell private-sector companies what to do. The US thinks the same way.”
Abe and Toyota president Akio Toyoda are set to meet at a hotel restaurant in Tokyo to exchange views on auto production in North America and other issues, a person involved in the meeting arrangements said.
Some Japanese policymakers worry Trump will consider limits on Japanese auto imports, which make up about 75 per cent of Japan’s trade surplus with the US.
Toyota should be considered a US manufacturer because it already makes cars in the US, Toyoda said yesterday. Toyoda also told reporters that his meeting with Abe was unconfirmed.
Japan’s government is hammering out plans to show Trump its firms are ready to create US jobs, according to a document whose contents were revealed to Reuters.
Abe will visit Washington on February 10 for the talks, at which Trump is expected to seek quick progress towards a bilateral trade deal.
Japan is also considering increasing US shale oil or gas imports, two sources said, which could be another way to ease US concern about its trade deficit with Japan.