Japanese Prime Minister Shigeru Ishiba expressed optimism on Sunday that his country could avoid higher U.S. tariffs, saying President Donald Trump had "recognised" Japan's huge investment in the U.S.

President Donald Trump says he wants to slash the U.S. trade deficit with Japan. Trump made the comments as he welcomed Japanese Prime Minister Shigeru Ishiba to the White House on Friday for their first face-to-face meeting.

At a joint press conference, the U.S. president said Japanese steel company Nippon Steel is dropping its acquisition of U.S. Steel in favor of an investment.