U.S. President Donald Trump welcomed Japanese Prime Minister Shigeru Ishiba at the White House on Friday and said the two countries would work to cut Washington's trade deficit with Tokyo amid escalating trade tensions threatening to rupture the global economy.

As he welcomed Shigeru Ishiba to the White House, Donald Trump added that he wasn't ruling out the possibility of tariffs against Japan, but believes the issue can be resolved without punitive action.

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.