Trump tariffs

It has been about three months since the inauguration of the Trump administration in the United States, and its series of high-tariff policies continue to shake the world. Countries are beginning full-fledged negotiations with the U.S., seeking tariff reductions and exemptions. At the same time, there are signs of a “move away from the U.S.” as nations work to diversify their trading partners.

For example, Mexico has reached an agreement to revise its free trade agreement with the EU. Canada, while attempting to repair relations with President Trump, has declared that “the old relationship based on security cooperation is over.” Meanwhile, China appears to be strengthening ties with U.S.-friendly nations.

Although the U.S. is an extremely important country, some argue that it accounts for less than 15% of global trade. As a result, efforts to establish a free trade system without the U.S. are gaining momentum.

President Trump is attempting to raise import costs to attract direct investment, but his authoritarian approach may lead to American isolation.
We must pay close attention to how a second Trump administration or a new trade system could affect various countries, including Japan.