when the un forces were fighting in korea during the korean war, japan was one of the major suppliers. this also helped japan’s economy. by 1980s, japan had become the world’s second largest economy, after the usa. at first, there was very close relationship between japan and the usa. but, japan’s economic might resulted into trade deficit for the usa. a trade deficit results when imports are more than exports. thus, usa was importing more than it exported to japan.