Trump invited the Japanese to produce cars in the United States

Trump invited the Japanese to produce cars in the United States

During a visit to Japan trump made a statement regarding the automotive industry. «Try to build cars in the United States, not send them,» he said.

However, the three largest Japan’s car companies already have factories in the United States, Japanese automakers have for decades been increasing their investments in America.

President trump believes that «trade with Japan unfair», implying that the U.S. trade deficit because imports exceed exports.

However, the Japanese automobile manufacturers Association reports that last year its members have built about 4 million vehicles in the United States. Exports from Japan to America has fallen from 3.5 million cars per year in 1986 to just over 1.5 million in 2016. Three of the four Japanese vehicles sold in the U.S. last year were built in North America, including Mexico and Canada.

«Many Japanese cars and so are made in the States, and this request does not reflect today’s reality,» said Steven Naked, Professor of International Christian University in Tokyo.

In the Nissan (NSANF) said that last year they sold 1.5 million vehicles in the U.S., 1 million were produced in the country. Honda (HMC) in the United States produced 70% of the 1.2 million cars the company sold in 2016.

Toyota (TM) has built 2.1 million vehicles at its plants in North America last year. The company plans to spend $ 1.3 billion on upgrades to the facility in Kentucky. Also, Toyota has cut the planned investments in the amount of 700 million USD in a new plant in Mexico.

Trade is the main theme that trump will discuss during his trip to Asia.