Trump: Japan to double defense spending by 2027. US committed to the defense of Japan

Pres. Trump comments

• Prepared to double defense spending by 2027
• Approved $1B in foreign military sales for Japan
• Discussed how our two nations can stay on the cutting edge of artificial intelligence
• Japan assumed beginning 40 new shipments of American liquefied natural gas
• We are going to work on trade deficit with Japan
• We can do it with just oil and gas
• Japan will be opening new auto plants
• Nissan is looking to make an “investment” in US Steel (I think he meant Nippon Steel not Nissan)

Japan PM Ishida comments:

• Confirmed that Japan will increase exports on US natural gas to Japan
• Japan and US work toward the denuclearization of North Korea.
• Calls relationship a new “Golden Age” between the countries.

Q&A

Trump:

• US pays more per pupil but are dead last on education
• Want to see education go back to the states.
• Want our military to be the strongest
• We are going to have the strongest military by far.
• We will meet on reciprocal tariffs on Monday or Tuesday. Have an announcement/news conference vs a flat fee tariff.
• Exciting talks with Ishiba about pipeline in Alaska
• Social Security will not be touched, will only be strengthened
• We have illegal immigrants on Social Security who will be taken out.

Ishiba:

• Both countries need to play our role
• Japan on our own responsibility need to increase our defense. The decision is with Japan
• If it is mutually beneficial, tariffs need to be set.
• $1T investment in the US will be a benefit to the US but also to Japan as well.
• Nippon Steel is not a acquisition, it is an investlment (US Steel shares are down -$2.30 or -5.89% at $37.00)
• Pres. Trump has restarted the importing of LNG. We are interesting in buying Ethanol and Ammonia.

The US stocks remain near lows for the day at the conclusion of the press conference.

• Dow is down -449 points or -1.00%
• S&P is down -58.47% or -0.97%
• Nasdaq is down -280 points or -1.42%.

This article was written by Greg Michalowski at www.forexlive.com.