
A car transport ship sits at anchor at the Nissan Motor's Oppama plant in Yokosuka, Japan, on Nov. 26. Automotive exports to the United States remain crucial to the Japanese economy.
Editor's Note: This assessment is part of a series of analyses supporting Stratfor's upcoming 2019 Annual Forecast. These assessments are designed to provide more context and in-depth analysis on key developments in the coming year. Japan will need to make some tough decisions on trade in 2019. This past year has been one of successes for Tokyo with the completion of its long-hoped-for Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement and the signing of an economic partnership with the European Union . Both will take effect in 2019. But just as these kick in, Japan will enter potentially contentious bilateral talks with the United States, Japan's largest export market and its second-largest trading partner overall. At issue is the U.S. trade deficit in goods with Japan ($61 billion in 2017), which has come under fire as the administration of President Donald Trump pushes for broader protectionism .