Trump's reversal on the Nippon Steel-US Steel acquisition dominated Japanese media throughout the day. Early morning reports confirmed Trump's approval of the previously contentious $14 billion deal, now carefully framed as a "partnership." Nippon Steel expressed "respect for Trump's wise decision," signaling diplomatic deference to the incoming administration.
The development comes as Japan-US tariff negotiations reach a "critical stage," with G7 agreements potentially in sight. These trade discussions represent a continued response to Trump's economic policies that have troubled Japanese manufacturers.
Meanwhile, domestic issues persisted. The government announced plans to allocate 390 billion yen from reserve funds to subsidize electricity and gas costs amid inflation concerns. Former minister Moriyama defended agricultural policy, stating "cheap rice isn't everything," as the administration continued managing fallout from the rice price crisis that precipitated former Agriculture Minister Eto's dismissal and contributed to cabinet support falling to 20.9%.