President Trump says he expects to conclude a trade agreement with Japan in August, yet he also characterized the bilateral trade imbalance as a “security threat” and as "unbelievably large.” How do we parse these seemingly contradictory signals? This brief podcast (4:41) offers several arguments to remain upbeat about Japan, including the notion that defining the trade imbalance as a security threat is likely to mean giving Japan a pass on military security issues, which would drain the Japanese economy; also, a deal with the U.S. would strengthen Prime Minister Abe in July elections.
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