Global trade tensions have been rising as President Donald Trump pursues protectionist policies in an effort to reduce the U.S. trade deficit with major exporters including China and Japan.

According to Japanese government officials, Aso also asked Washington to exercise restraint when considering new automobile tariffs, after the U.S. Commerce Department last week launched an investigation into imported cars, trucks and auto parts.

Aso told Mnuchin that steel and aluminum imports from Japan do not pose a national security threat to the United States, the rationale provided by Trump when he announced the levies in March.

The Commerce Department said Thursday that the European Union, Canada and Mexico would also be subject to the tariffs, triggering retaliatory measures and bringing fears of an all-out trade war.

Japan is also considering countermeasures if it is not granted an exemption.

Thursday’s talks between Aso and Mnuchin were held ahead of a conference of the Group of Seven economies in the Canadian ski resort of Whistler.

Canadian Finance Minister Bill Morneau said Washington’s trade policies would be at the top of the agenda during the three-day meeting of finance ministers and central bank governors from Britain, Canada, France, Germany, Italy, Japan and the United States.

Bank of Japan Governor Haruhiko Kuroda told reporters ahead of the meeting, “I think the other countries will make their concerns known to the United States.”

The finance chiefs are also expected to discuss other risks to global economic growth including monetary tightening by the U.S Federal Reserve and political uncertainty in Italy.

The Fed’s raising of interest rates has stoked fears of capital outflows from emerging economies, which have attracted investors seeking higher returns since central banks in advanced economies slashed interest rates in the wake of the 2008 financial crisis.

Aso and Mnuchin agreed in their meeting to continue putting “maximum pressure” on North Korea to give up its nuclear weapons program, with the country’s leader Kim Jong Un and Trump expected to hold a summit in Singapore later this month.

Source:japantoday.com