February 4, 2025 at 12:29 JST
President Donald Trump speaks before signing an executive order in the Oval Office of the White House on Feb. 3 in Washington. (AP Photo/Evan Vucci)
U.S. President Donald Trump signed executive orders imposing blanket tariffs on imports from Canada, Mexico and China, effective Feb. 4.
These unilateral tariff hikes can only be described as reckless acts that damage the international order and the global economy.
The likelihood of these actions reigniting a "trade war" by triggering a spiral of retaliations is becoming a tangible reality. It is imperative to stop intensifying economic conflicts that no one can win.
The executive orders mandate a 25 percent tariff on all imports from Canada and Mexico, with the exception of Canadian energy products, which will incur a 10 percent tariff. Additionally, all goods from China will now carry a 10 percent tariff on top of existing import duties.
Trump cited illegal immigration and the influx of illegal fentanyl, a powerful synthetic drug, into the United States as reasons for taking these measures.
This blatant use of tariffs as a tool to influence issues unrelated to trade, known as "deal diplomacy," is nothing short of unreasonable economic intimidation by a superpower and is utterly unacceptable.
The primary issue with these measures is that they embody a self-righteous approach, flouting established international trade norms, including those set by the World Trade Organization (WTO).
During its first term, the Trump administration critiqued the North American Free Trade Agreement and subsequently concluded a more favorable deal for the United States, the United States-Mexico-Canada Agreement (USMCA). However, this aggressive tariff strategy likely contravenes even the terms of the USMCA.
Trump should recognize the irrationality of his tariff policies, which disrupt the established trade order that positions the United States at its core and undermine the country's credibility within the international community.
Concerns are mounting over the substantial effects of the new tariffs on the real economy. The tariffs affect a broad spectrum of items, leading to increased costs and decreased profits across various sectors such as industrial products, food and natural resources.
The automotive industry, in particular, is expected to face serious disruptions due to its reliance on extensive cross-border supply chains. These developments are likely to present significant challenges for Japanese companies within the industry.
Trump claims that foreign companies will absorb the cost of the tariffs, but this assertion is flawed. The likely increase in prices for imported goods will, in fact, pass the burden onto U.S. consumers and businesses, potentially rekindling inflationary pressures that had previously shown signs of subsiding.
The countries affected by the tariffs are responding assertively. Mexico and Canada are gearing up to impose retaliatory tariffs on American goods and other measures, while China has announced plans to lodge a complaint with the WTO.
It was entirely expected that these nations would take such steps in response to the new import duties. The United States bears responsibility for creating this disruptive situation.
Trump has also hinted at further retaliation. However, if the conflict escalates, both parties will suffer significant losses, potentially leading to a global economic downturn. It is imperative for countries to prioritize resolving the situation swiftly through diplomatic efforts.
For Japan, this issue is not someone else's problem. Having benefited greatly from the post-war free trade system, Japan has a responsibility to act as a defender of this system in the diplomatic arena.
Trump has also indicated the option of imposing uniform tariffs on all countries, and the possibility that Japan could be directly affected cannot be entirely dismissed.
Prime Minister Shigeru Ishiba will soon meet with Trump. Ishiba should not squander this opportunity to seek a positive change in the Trump administration's trade agenda.
He needs to make a strong case to the U.S. leader against a futile trade war and advocate for retracting the tariffs.
--The Asahi Shimbun, Feb. 4
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