Tensions in U.S.-Japanese Relations

Report Outline
Unsolved Trade Problems
Japan's Economic Prospects
The Debate Over Defense
New Sources of Tension
Special Focus

Unsolved Trade Problems

Protectionist Sentiments in Congress

It's april in the nation's capital and the city's famed cherry trees are in full bloom. The original trees were a gift of friendship from Japan in 1912. But this year the beauty of the cherry blossoms has been overshadowed by the acrimonious debate over Japan's burgeoning trade imbalance with the United States. Japan exported $37.6 billion worth of merchandise—mostly manufactured goods—to the United States last year. U.S. exports to Japan in 1981—mostly agricultural products and other raw materials—totaled $21.8 billion (see box, p. 260).

This $15.8 billion trade deficit (see box, p. 255) comes at a time when the United States is in an economic recession that has hit its automobile industry particularly hard. Japanese automakers, on the other hand, are enjoying unparalleled success—much of it in the United States. Over 21 percent of the cars sold in the United States last year were made in Japan. Little wonder that Japan's trading policies have placed severe strains on U.S.-Japan ties. “Japanese-American relations are more troubled today than at any time since World War II,” said international attorney Isaac Shapiro, expressing a sentiment shared by many.

The trade issue that has received most attention in the United States is the difficulty U.S. manufacturers have had penetrating the Japanese market. Business and government officials and members of Congress have complained loudly about the barriers foreign businesses face in Japan. These include Japan's vigorous inspection of foreign-made goods and agricultural products and a distribution system that is bewildering to many foreigners.