Sunday, August 31, 2025

Japan Prepares for Long-Term “Trump-like” U.S. Trade Policies

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Japan’s response to Trump-like U.S. policies must evolve, said Kenichiro Sasae, president of the Japan Institute of International Affairs. In an interview with The Yomiuri Shimbun, Sasae warned that Trump’s trade ideas could outlast his presidency. He noted that the U.S. has long criticized Japan’s auto exports and farm market protections. These concerns existed before Trump entered office and likely won’t vanish afterward. So, Japan must take a long-term view rather than just reacting tactically.

Sasae stressed that the U.S. has always balanced support for free trade with protecting domestic jobs. Since the 2000s, America’s global dominance has declined, prompting more protectionist policies. Trump’s tariffs marked a bold shift, using them to both cut deficits and pressure trade partners. Japan’s response to Trump-like U.S. policies must therefore break from old negotiation habits. According to Sasae, smart, forward-looking strategies are now essential.

Japan has made good moves so far, Sasae said, pointing to Prime Minister Ishiba’s efforts on auto tariffs. He also highlighted Japan’s steady investments in the U.S., which score political points in Washington. Sasae believes Japan has avoided open conflict with Trump wisely. Instead of clashing, Japan stayed focused on results, often aligning interests with the U.S. That approach may help Tokyo stay ahead of rising U.S.-China tensions.

Looking ahead, Sasae urged Japan not to simply react to U.S. shifts. He called for long-delayed reforms in Japan’s industrial policy. Japan’s response to Trump-like U.S. policies must include strengthening its global partnerships. Sasae recommended deeper cooperation with Europe and Asia to uphold multilateralism. Strong ties to institutions like the UN will help Japan navigate global uncertainty.

Lastly, Sasae advised Japan to remain flexible and leave the door open for U.S. cooperation. Even if the U.S. turns inward, a return to multilateralism could happen someday. Japan should lead by example and prepare for all future outcomes. With strong diplomacy and reform, Japan can keep advancing its interests. Japan’s response to Trump-like U.S. policies will shape its global role in the years ahead.

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