Tariffs come and go, but some economic relationships between the United States and the world persevere even in uncertain times. Such is the enduring relationship between America and Japan.
That was on display recently in Chicago, where several hundred people gathered to mark the birthday of Japanese Emperor Naruhito but also to celebrate the Midwest’s role in strengthening the ties that bind the economies of both nations.
“Japan (has been) the largest foreign investor in the U.S. for six straight years,” Consul General Masashi Mizobuchi told the crowd. “In the 10 Midwestern states alone, around 1,200 Japanese companies support 160,000 jobs and $55 billion in investment… and 33,000 Japanese nationals live in the region.”
Wisconsin is a player in that multi-state mix. Companies such as Kikkoman Foods have invested in Walworth County since the early 1970s and will soon expand production to Jefferson County. FujiFilm has been a part of Madison’s biotechnology community since acquiring Cellular Dynamics Inc. and is expanding through a Middleton location. Toshiba America Energy Systems Corp., Komatsu Mining Technologies, Yaskawa America Inc. and IRIS USA are among other major Japanese firms with Wisconsin footprints.
Mizobuchi’s consulate covers 10 states, including Wisconsin, where the Japan-America Society of Wisconsin Inc. has been a part of the picture for decades. It was represented in Chicago by Honorary Consul Andrew Seaborg and Executive Director Kerry Clark.
The topic of tariffs was never raised in any formal remarks, even though the reception took place the same day the U.S. Supreme Court ruled, 6-3, that President Donald Trump could not unilaterally tax incoming goods under an emergency powers law. Simply put, the court ruled Congress was illegally left out of the loop.
While Trump’s tariffs will resume under other laws, the U.S. and Japan previously worked out a deal that could lead to $550 billion in Japanese investment in return for much lower tariffs and a profit-sharing plan. About $36 billion in Japanese investments in Ohio, Texas and Georgia were announced in late February, which means the deal is holding up — so far.
“Japan remains fully committed to fulfilling its $550 billion Strategic Investment Initiative,” said Seaborg, who is helping to identify potential Wisconsin deals. “Much of the capital was already targeted toward U.S. investment even before the tariffs were announced.”
Will that deal help the state land its fair share of investment? Time will tell. JASWI and the Wisconsin-Japan Strategic Partnership are working on it.
Investment categories are advanced manufacturing, shipbuilding, critical minerals and metals extraction, energy, pharmaceuticals and bio-health products. Most are strong fits with the state’s profile.
“In Wisconsin, several serious proposals are taking shape based on long-standing collaboration between the UW-Madison and Japanese private sector partners,” Seaborg said. “The process is still forming but Wisconsin is off to a great start.”
It’s not all about dollars and yen. As Mizobuchi stressed in his remarks, the ties binding the two nations date to the mid-1800s and were expanded not long after World War II. “Sister city” and regional relationships go back more than 70 years. Wisconsin’s sister state is Chiba Prefecture.
Sports, arts and food are part of the picture, as fans of baseball star Shohei Ohtani, shodo calligraphy and good sushi can tell you.
Long-term connections and cultural exchanges in Wisconsin and nationwide help to explain why Japan will likely stick with its investment deal, even though the landscape around tariffs became bumpier with the recent ruling. Defense considerations in East Asia are a part of the mix, too.
In an era when some U.S. partners are being shunted, the relationship with Japan continues to work well for both sides. It could be good for Wisconsin if that holds up.
Tom Still is the past president of the Wisconsin Technology Council. He is an adviser to Competitive Wisconsin Inc., a nonprofit policy group.
