From 1945 to 1964 the US held a huge trade advantage over the Japanese. The imbalance was in the US favor to the tune of 315 million dollars per year. We were busily engaged in helping the Japanese rebuild their country after the war, and , because of our bombing, their industry was in no shape to be exporting anything substantial.
In 1961 the Japanese approached President Kennedy to ask his assistance in helping to revolve this "unfair" balance of trade problem. The president then asked our Trade Representative to see what could be done to aide the Japanese. At a Press Conference in mid-November, Kennedy praised the U.S. Trade negotiators for working out a satisfactory trade agreement with the Japanese. The results were not immediately apparent. It wasn't until 1965 that the balance of trade shifted in favor of Japan. It has remained in their favor every year since 1965. This imbalance has been an average of 27 billion dollars per year. The projection is over 50 billion for this year.
In 1965 the Balance of trade with Japan switched over in favor of the Japanese. This was in accord with the wishes of President Kennedy, although he probably never dreamed of such an incredible imbalance. (To make matters worse Communist China is now approaching similar numbers.)
What a few people seem to remember is that soon after the trade agreement of 1961 several of the U.S. trade negotiators quit their jobs with our government and went to work for the Japanese. They became Lobbyists for Japan in Washington with salaries ranging from $100,000 to $200,000 per year.
What no Japanese seem to remember is that we deliberately tried to work out a trade agreement TO HELP THEM. In particular the new 'tough' Premier of Japan seems determined to show the US how tough he can be in trade negotiations with us. They seem able to remember Hiroshima, but cannot recall Pearl Harbor. They appear to have forgotten how General MacArthur helped rebuild the Japanese economy; that no reparations were demanded from the Japanese after their surrender; that we allowed their Emperor to retain his position without having to endure anything like the Nuremburg trials; or that we have provided the defense for their nation the past 50 years. They seem to have to forgotten that friends work to the advantage of both parties; that is what is good for one is good for the other; that a strong US Dollar is good for Japan's successful trade with our country; and conversely, that a strong yen is not to their advantage. Properly balanced monitory systems are to both of our advantages. A huge trade imbalance is not good for either party in the long run.
There was one other important point. In dealing with the Japanese, or most any other nationality, the use of threats is hardly a good negotiating ploy. I believe that in dealing with the Japanese in particular we should start on the basis of HONOR. They are an honorable people. If we were to take the approach that we helped them when they had a Balance of Trade problem, and now it is to our benefit as well as to theirs that we ask them for help in return. We are the two largest trading patterns in the world, and we both would like it to stay that way. But it cannot continue when one side it taking extreme advantage of the other. Our markets are open to Japanese products, it is only just and fair that their markets be open to our products. I believe if the Japanese were reminded of President Kennedy's generous help in their time of need, the Japanese people would respond with equal generosity.
Today the two countries are at war with each other, economically. Japan is taxing American goods that so, that we can't sell any thing in their country, yet we don' tax them here. The United States is treating that if they don't lower the taxes on American goods we are going to tax Japanese goods. An example would be A Nissan car around $20,000 could become a $35,000 which would make people buy American cars.