WASHINGTON, D.C.: This week, President Donald Trump encouraged Japan to invest in U.S. energy and technology.

He praised Japan as a key ally and discussed a dispute over Nippon Steel's blocked US$14.9 billion attempt to buy U.S. Steel.

Trump, who had opposed the deal, said Nippon Steel was now considering an "investment, not a purchase," which he supported. However, U.S. Steel shares fell 6 percent, and Nippon Steel has not officially withdrawn its bid.

The U.S. and Japan held trade talks amid rising global tensions following Trump's inauguration. Trump wants Japan to reduce its $68.5 billion trade surplus with the U.S. and welcomed Prime Minister Shigeru Ishiba's promise to increase Japanese investment in the U.S. to $1 trillion. Japan has already invested $783.3 billion, making it the largest foreign investor in the U.S.

Trump also said Japan was interested in a $44 billion gas pipeline in Alaska, but a Japanese official expressed doubts about the project. The two leaders released a joint statement reaffirming their positions on China, Taiwan, North Korea, and Russia, similar to past U.S. policies.

During their press conference, Ishiba joked about Trump's tough TV persona, calling him "sincere and powerful" in person, which made Trump laugh. Trump promised to visit Japan soon and said he was confident the U.S.-Japan alliance would grow stronger.

Trump's trade policies, including tariffs on Chinese imports, have raised concerns in Asia. Japan, a major exporter, relies heavily on trade, especially with China. While Ishiba's early White House visit suggests positive relations, experts believe Japan's increased investments may not fully resolve the trade imbalance.