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.

The two leaders pledged to pursue a 'new golden age' of U.S.-Japan relations — though Ishiba did get an earful about America's trade deficit with its ally.

U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba said on Friday Japan was looking at an investment in U.S. Steel instead of an acquisition.

President Trump supports the Japanese company’s taking a stake in the American steel maker after the U.S. blocked a $14 billion takeover bid.

Nippon Steel “is going to be doing something very exciting about U.S. Steel,” Trump said at a news conference with Japanese Prime Minister Shigeru Ishiba.

As part of his cost-cutting effort, the billionaire, whose companies have enormous contracts with the military, will turn his so-called Department of Government Efficiency on the Pentagon.

Elon Musk “will be looking at education pretty quickly and he will be looking at military too," Trump said at a news conference Friday.