During their summit last week, Japanese Prime Minister Ishiba Shigeru reportedly conveyed to U.S. President Donald Trump that Japan will determine its own defense budget based on what it considers ideal rather than adjusting it according to U.S. demands.
According to Nikkei on Monday, Ishiba stated in an interview the previous day that Japan has the authority to decide its defense expenditures, emphasizing that an increase would not be made solely because the U.S. requests it. He noted that Trump responded as if it were a natural stance. Regarding the possibility of further increasing defense spending, Ishiba said that since the security environment beyond 2027 remains uncertain, it is not yet the time to discuss or make commitments on the issue.
However, during a press conference following the summit, Trump said he expects Japan to increase its defense budget further. The Japanese government explained to the U.S. that it had revised its three key security documents in December 2022, deciding to raise defense spending from 1% of GDP at the time to 2% of GDP by the 2027 fiscal year (April 2027–March 2028). Despite this explanation, Japan effectively faced additional pressure to expand its defense budget further.
During the summit, discussions also touched on the deal between Nippon Steel and U.S. Steel. Trump stated that the two sides agreed on an investment rather than an outright acquisition, which Ishiba confirmed was a proposal from the Japanese side. Ishiba added that Nippon Steel’s CEO is expected to meet with President Trump soon, emphasizing that the key issue is ensuring that U.S. Steel remains an American company. He noted that there is no clear legal distinction between an acquisition and an investment, suggesting that the focus is on finding a solution where U.S. Steel is still perceived as a U.S. company after the transaction. When asked if Japan aimed for a resolution where U.S. Steel would still be regarded as an American company even after the deal, Ishiba replied, “Yes.” However, he declined to provide details on the specific measures being considered. In a separate interview with Yomiuri Shimbun on the same day, Ishiba stated that legal clarifications regarding an acquisition and an investment would be addressed in the coming process.