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1 Japan pM Ishiba, after Meeting Trump, Voices Optimism Over Averting

Ishiba states no talk with Trump on vehicle tariffs at top

Trump recognises Japan's US huge financial investment, job production

LNG, steel, AI and automobiles are locations Japan can invest in US

Nippon Steel will operate under US management, personnel

Japan will not raise defence costs without public assistance

TOKYO, Feb 9 (Reuters) - Japanese Prime Minister Shigeru Ishiba revealed optimism on Sunday that his country might prevent higher U.S. tariffs, saying President Donald Trump had "acknowledged" Japan's big financial investment in the U.S. and the American tasks that it develops.

At his very first White House top on Friday, Ishiba told public broadcaster NHK, he explained to Trump how lots of Japanese car manufacturers were creating jobs in the United States.

The two did not specifically talk about vehicle tariffs, Ishiba said, although he said he did not know whether Japan would go through the mutual tariffs that Trump has actually said he prepares to trouble imports.

Tokyo has so far got away the trade war Trump released in his first weeks in workplace. He has actually revealed tariffs on items from Canada, Mexico and China, although he postponed the 25% duties on his North American neighbours to enable talks.

The intensifying trade stress because Trump returned to the White House on January 20 threaten to rupture the international economy.

Ishiba said he believes Trump "identified the fact Japan has been the world's biggest financier in the United States for 5 straight years, and is therefore various from other countries."

"Japan is producing lots of U.S. jobs. I think (Washington) won't go straight to the idea of higher tariffs," he said.

Ishiba voiced optimism that Japan and the U.S. can prevent a tit-for-tat tariff war, stressing that tariffs ought to be put in location in a manner that "benefits both sides".

"Any action that makes use of or excludes the other side won't last," Ishiba said. "The question is whether there is any issue in between Japan and the United States that warrants imposing greater tariffs," he added.

Japan had the highest foreign direct investment in the United States in 2023 at $783.3 billion, disgaeawiki.info followed by Canada and Germany, according to the most recent U.S. Commerce Department data.

Trump pressed Ishiba to close Japan's $68.5 billion yearly trade surplus with Washington however expressed optimism this might be done quickly, offered a pledge by Ishiba to bring Japanese financial investment in the U.S. to $1 trillion.

On Sunday, Ishiba determined liquefied gas, steel, AI and autos as areas that Japanese business could purchase.

He also discussed Trump's promise to take a look at Nippon Steel purchasing U.S. Steel, rather than buying the storied American company - a purchase opposed by Trump and obstructed by his predecessor, Joe Biden.

"Investment is being made to guarantee that it remains an American company. It will continue to operate under American management, with American staff members," Ishiba said. "The bottom line is how to ensure it remains an American business. From President Trump's point of view, this is of utmost value."

On military spending, another area where Trump has actually pressed allies for increases, Ishiba said Japan would not increase its defence budget plan without very first winning public backing. "It is vital to make sure that what is deemed essential is something the taxpayers can understand and support," he said. (Reporting by Leika Kihara: Additional reporting by Tim Kelly