Japan's Current-Account Surplus Makes an Easy Target for Trump
(Bloomberg) -- Japan’s swelling current-account surplus in February may be good news for the country’s finances, but not so much for its relationship with the U.S.
“The current-account balance above 2 trillion yen is the sort of level that makes it easier for Japan to become the target of attacks from the U.S. amid a backdrop of increasing trade frictions,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co.
More: Japan’s Current-Account Surplus Widens on Overseas Income
While much of the current-account surplus is driven by Japan’s income from overseas -- including a significant chunk of investment in America, which Trump should welcome -- the trade surplus with the U.S. grew to a hefty 631 billion yen ($5.9 billion) in February. That’s up 3.4 percent from a year earlier amid strong exports of automobiles.
Prime Minister Shinzo Abe is scheduled to meet Trump at his Mar-a-Lago club on April 17-18.
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