It’s tempting to believe that, in President Trump’s Washington, most tenets of free trade and international business relations have been turned unceremoniously on their heads.
A recent international conclave of companies and nations interested in investing more money in the United States demonstrated there is still confidence in America’s long-term payoff.
The SelectUSA Investment Summit, which attracted 5,500 attendees from about 100 nations to Washington, was a confirmation that even the prospect of higher U.S. tariffs — which are broadly opposed by those same countries — have yet to deter long-term investments in the world’s largest economy.
There’s serious concern about tariffs, as Japan’s U.S. ambassador said during a reception in his Washington home, but not yet panic.
“There’s a risk in lowering the momentum we (Japan and the United States) have already achieved together,” Ambassador Shigeo Yamada said May 12 to several hundred visitors, “but we still believe (tariff negotiations) will lead to a mutually acceptable solution for both countries.”
Japan is the No. 1 source of foreign direct investment in the United States, which is defined as money invested in American companies, factories and other enterprises. It typically involves a lasting management interest, although not outright ownership.
Yamada said Japan’s goal is to reach a $1 trillion investment total in the United States within a year or so, which is not unrealistic given it’s already about $800 billion. Japan is the No. 1 investor in 40 of 50 states and among the top five in all others.
Seven U.S. governors from a mix of geographies and political affiliations spoke during the event, demonstrating that foreign direct investment is bipartisan and vital to their respective economies.
Those governors were Matt Meyer of Delaware, Tate Reeves of Mississippi, J.B. Pritzker of Illinois, Gretchen Whitmer of Michigan, Michelle Lujan Grisham of New Mexico, Mike Delaney of Alaska and Josh Stein of North Carolina.
Their remarks reflected a sense that Trump’s call for higher tariffs, even if delayed for a few months, are not consistent with state-by-state economic development strategies. In fact, states are not shy by negotiating such agreements on their own.
Wisconsin was represented at SelectUSA by Sam Rikkers, deputy secretary of the Wisconsin Economic Development Corp.; Shayna Hetzel, WEDC’s entrepreneurship and innovation director; and others. On May 13, they approved a trade and economic development agreement with Monterrey, Mexico.
Invest Monterrey, the regional economic development arm of the city of Monterrey and the investment promotion arm of the State of Nuevo León, signed a “memorandum of understanding” with WEDC to increase collaboration in trade, business attraction, and market opportunities.
Monterrey is Mexico’s second-largest city and the capital of Nuevo Leon in northeastern Mexico. It is recognized as an attractive region for investments and general business relations. Its workforce is considered among the most productive and well-prepared in the country.
It’s the second such agreement negotiated by WEDC with regions in other nations; a previous pact was signed with the State of Hesse in Germany. On the horizon: a trade mission to Japan in September.
There are already solid Wisconsin ties to Japan, which is a leading defense and economic partner. Kikkoman Foods has been in Wisconsin since 1972. Toshiba Energy Systems, Komatsu Mining, IRIS-USA, FujiFilm and Yashawa America are among other examples.
The Japan-America Society of Wisconsin is active, as there are close ties with Japanese organizations in Chicago such as the Japan External Trade Organization. Joint summits on engineering and bio-health are planned in Wisconsin in late 2005 or early 2026. There are even local affiliations, such as Madison’s connections with the province of Chiba, Japan, and Eau Claire’s 2026 “Japan Day.”
States governed by Republicans and Democrats alike recognize the U.S. economy cannot exist in a bubble. Trade, direct investments and other business deals can be mutually beneficial, if ethically based. Tariffs are at least temporary roadblocks, but they need not be a permanent impediment if solutions are properly negotiated.
