Trump Pressure Sparks Japan Concerns, Defense Official Says "Be Prepared" for Rising US Troop Stationing Costs Ahead of 2026 Midterms

Japan is bracing for potential increased pressure from President Trump on defense spending, US troop stationing costs, and monetary policy, as Washington approaches the November 2026 midterm elections.

Japan Faces Rising US Troop Stationing Costs

Tokyo and Washington are expected to negotiate a new five-year agreement covering Japan's financial support for US forces, starting in fiscal year 2027, according to Nikkei Asia.

Japan contributed over 200 billion yen in fiscal year 2026, but a senior Defense Ministry official said Tokyo should be prepared for pressure to increase this amount.

"We should be prepared for demands for some level of increase," the official said.

Trump has previously argued that US allies should bear more defense costs.

According to former US National Security Advisor John Bolton, during Trump's first term, his administration sought to more than triple Japan's contribution.

Trump Pushes Japan on Defense and Yen

Washington is also urging Japan to raise defense spending to 3.5% of GDP, while Tokyo currently targets 2%.

Pressure also extends to monetary policy. The US and Japan recently coordinated yen-buying intervention as the yen weakened.

The Bank of Japan's next policy meeting is scheduled for September 17-18, with markets watching for a possible rate hike.

Trump Plans New Summit with Kim Jong Un

Trump has directed aides to explore a potential summit with North Korean leader Kim Jong Un in fall 2026, possibly during Trump's November Asia trip when he will attend the APEC summit in China, the Wall Street Journal reported Tuesday.

On Monday, Trump said Kim Jong Un responded to his outreach, describing the exchange as "very positive."

Trump has also ordered the Pentagon to significantly reduce US-South Korea military exercises, arguing they are costly and send an "inappropriate and hostile" signal to North Korea.

He said his approach aims to ease tensions and make the situation safer, while adding that Kim Jong Un "has always been very respectful to me."