The foreign ministers of Japan and the United States, Takeshi Iwaya and Antony Blinken, praised the strength of their countries’ ties on Tuesday, despite Japanese Prime Minister Shigeru Ishiba expressing confusion over US President Joe Biden’s decision to block Nippon Steel’s $14.9 billion bid for US Steel. The deal, which was blocked last Friday, was a significant move in the US efforts to boost ties with Japan and South Korea, but its impact on trade and investment between the two countries remains uncertain.
Iwaya and Blinken held a meeting in Tokyo on Tuesday, during which they exchanged views on the economy, including the acquisition of US Steel by Nippon Steel Corporation. They reaffirmed the importance of Japan-US economic relations, including investments by Japanese companies in the US.
Blinken stated that the two countries are “leading the way” in cooperation between like-minded nations, and that he has great confidence that this will continue for many years to come. Ishiba, on the other hand, had expressed confusion over Biden’s decision, saying it was “perplexing”.
The Japanese government and business lobbies have been pushing for the merger, citing the potential benefits for the US-Japan relationship. However, the deal faced opposition from both Biden and President-elect Donald Trump, who takes office on January 20 and has promised to block the deal.
Despite the tension, analysts believe that the impact on the wider US-Japan relationship will be limited, given the shared security concerns about China. The countries have been working together to form a trilateral relationship to counter China’s growing military power, and this bond will likely help to mitigate any potential damage from the deal.
A Japanese diplomat told Reuters that Biden’s decision could have a chilling effect on foreign direct investment, but hoped that close ties between the two countries would continue, with a strong emphasis on re-establishing the strong ties with Trump seen during his previous administration, and taking advantage of the increasingly hawkish mood in Washington on China.
