Japan Pledges To Increase American Soybean Purchases Ahead of Trump Visit

Sanae Takaichi is preparing to welcome President Trump to Tokyo next week for talks on trade and military ties.

AP/Michael Conroy
Soybeans are harvested on the Warpup Farm in Indiana. AP/Michael Conroy

Japan is looking to firm up an increase in purchases of  American goods — including soybeans, gas, and pickup trucks — as its new prime minister, Sanae Takaichi, prepares for a visit from President Trump.

Mr. Trump will be in Tokyo next week and Ms. Takaichi and Mr. Trump are expected to talk about tariffs and paying more of the costs of American military support for Japan, including the 50,000 troops serving on bases across Japan.

Known as Japan’s “Iron Lady,” Ms. Takaichi is the country’s first female leader and has espoused right-wing, nationalist views. She has indicated that she wants to deepen military ties with America.

Japan is considering increasing defense spending but Ms. Takaichi will not commit to a new defense spending target at the meeting, Reuters reports.

America and Japan agreed on a breakthrough trade agreement in July that supposedly includes huge new Japanese investments in the United States.

In a statement, the White House says last month’s agreement includes $15 billion worth of “unprecedented access” to Japanese markets. That includes a commitment to purchase $8 billion of American agricultural goods, including corn, soybeans, fertilizers, bioethanol, and sustainable aviation fuel.

The deal also includes a promise to purchase $7 billion a year of American liquified natural gas.

Other terms of the trade agreement call for Japan to ease restrictions on the import of trucks, rice, and other agricultural goods from America and is paving the way for the purchase agreement being ironed out right now.

The increase in soybean purchases comes after a request  last week by Commerce Secretary Howard Lutnick, according to Reuters. American imports already total about 70 percent of Japan’s consumption.

American soybean farmers are hurting after China stopped buying them as part of a larger trade war.

Mr. Trump has been critical of Communist China over the soybeans and has complained they are using American farmers as a negotiating tactic in trade talks. China is traditionally the largest export market for American soybeans and it bought more than $12 billion of soybeans last year.

Sales of American soybeans evaporated after China slapped a 23 percent retaliatory tariff on the crop and began purchasing the commodity from other countries.


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