Sunday’s Nikkei front-paged an interview with Director of Trade and Industrial Policy Peter Navarro, in which he took issue with the huge trade imbalance between the U.S. and Japan. He was quoted as saying: “The U.S. trade deficit with Japan is huge. President Trump is extremely serious about seeking balance and fair trade. In the auto sector, U.S. exports to Japan are less than 1% of Japanese exports to the U.S.” He urged Tokyo to remove nontariff barriers, such as environmental and safety standards and called for Japanese automakers to start building engines and other key parts in America. While calling Japan an “important ally,” the senior White House official reportedly insisted that Japan has taken advantage of the U.S. on trade. Asked if Washington will demand quantitative restrictions on Japanese auto exports to the U.S. market in bilateral trade negotiations, Navarro said it will be up to President Trump or USTR Lighthizer to decide. The daily also reported on his tough remarks on trade with China.