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.

Trump also announced alongside the Japanese prime minister that Nippon Steel was dropping its $14.1 billion acquisition of U.S. steel.

Ishiba will also look to remind Trump — who has proposed tariffs on both friends and foes in an effort to boost American manufacturing — about the long-running U.S.-Japan alliance. Japanese companies employ nearly 1 million Americans and have held the top spot for cumulative foreign direct investment into the U.S. over the last five years.