Japan concerned that U.S. could tie trade agreement to defense spending

The Japanese government is concerned that the Japan-U.S. security arrangement might be used as leverage in negotiations to get Japan to buy more U.S.-made defense equipment.

Tokyo plans to make the “additional” purchases of U.S.-made defense equipment that are a part of the Japan-U.S. trade agreement through existing plans, such as the Defense Buildup Program.

As a result of the trade negotiations, the U.S. government announced that Japan will increase its annual purchases of U.S. defense equipment by an “additional billions of dollars.”

At a news conference on Thursday, Chief Cabinet Secretary Yoshimasa Hayashi stated that near-term purchases of defense equipment are based on the already-decided Defense Buildup Program and other policies, indicating that they do not constitute additional purchases.

On Thursday, Ryosei Akazawa, economic revitalization minister, told reporters in Tokyo that there was no difference in understanding between Japan and the United States on the issue.

Akazawa added that he had explained during negotiations with the U.S. government that defense equipment purchases could contribute to an improved trade balance between the two countries.

The Japanese government, however, is still concerned that U.S. President Donald Trump’s administration may continue to push for deals that include further purchases of defense equipment and increases in defense spending.

Trump has reportedly expressed dissatisfaction with the Japan-U.S. Security Treaty, claiming that while the United States has spent hundreds of billions of dollars protecting Japan, Japan has contributed nothing.

The U.S. Defense Department has indicated that its Asian allies, including Japan, should increase their defense spending to 5% of their gross domestic product.

“Should increases in defense spending and equipment purchases not meet their expectations, (Washington) might threaten us again with higher tariffs,” said a high-ranking Japanese government official.

The so-called sympathy budget, which is paid by Japan to defray the costs of stationing U.S. troops on its territory, is also set to expire in March 2027. There are expected to be complicated negotiations with the United States on new burden-sharing ratios.