A "loan word" is a word that is imported from one language into another. Japanese is full of loan words. A "katakana" dictionary I own lists over 3,300 loan words from English, German and Portuguese. Sometimes they get truncated along the way, such as the words "personal computer" which became "pasocon" in Japanese.
The real fun begins when loan words are repatriated with varying success. The word "Animation", for example, was truncated and used in Japanese to refer to animated films. That truncated word, "Anime", was then brought back into English to refer to Japanese animated films.
...And that's how the English words "icecream" and "sandwich" became "ice" and "sand" in Japanese, and why some marketing weenie schmo in Japan decided he didn't need a proofreader to tell him that "ice" and "sand" mean something else in English.
Enjoy your ice sand. Insert desert penguin joke here.