Media reports that Trump threatens to impose tariffs on Japan, causing the yen and Japanese ETFs to decline, while US Steel surges
During a meeting with Japanese Prime Minister Shigeru Ishiba, Trump threatened to impose tariffs on Japan in an effort to reduce the U.S. trade deficit with Japan. This statement led to a decline in the yen and Japanese ETFs, with the dollar rising above 151.80 against the yen at one point. Meanwhile, US Steel's stock price rebounded after a widening decline, rising nearly 5.4% during the day. Ishiba stated that Japan would further invest in the U.S
Trump's tariff threat may fall on Japan, which he issued during a meeting with Japanese Prime Minister Shigeru Ishiba.
According to some media reports, on Friday, February 7th, local time, during a meeting at the White House with visiting Shigeru Ishiba, U.S. President Trump stated that he hopes to work to reduce the U.S. trade deficit with Japan. If the relationship between the two countries cannot be "equal," the U.S. may impose tariffs on Japan. Imposing tariffs on Japan is an option. Auto tariffs have always been one of the options.
Trump hinted that, like his predecessor Biden, he also opposes Nippon Steel's acquisition of U.S. Steel. Trump said that his view on Nippon Steel's acquisition of U.S. Steel has not changed.
During the meeting, Shigeru Ishiba stated that Japan is prepared to invest further in the U.S., and two Japanese automakers, Toyota and Isuzu, are planning to increase investments in the U.S. Isuzu will open a factory in the U.S.
After Trump's remarks, Japanese ETFs and the yen fell further. The dollar against the yen briefly rose above 151.80, gaining over 0.2% intraday, moving away from the eight-week low of 151.00 reached after a decline in early U.S. stock trading.
The iShares MSCI Japan ETF (EWJ) listed in the U.S. saw its decline widen to 1.5%, hitting a new daily low.
U.S. Steel Corporation (X), which fell about 8.1% at its daily low, surged, turning positive and reaching a new daily high with an intraday gain of nearly 5.4%.
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