Some targets of the U.S.’s ‘shock-and-awe’ tariff strategy are moving from denial and anger to acceptance and even resistance, chafing at Washington’s demands and pitching new trade blocs of Asian and European economies.
Japan is on the front lines of these high-stakes tariff negotiations. Last week, U.S. President Donald Trump participated in a 50-minute meeting with Japan's top tariff negotiator, Akazawa Ryosei.
Akazawa, who posed at the White House afterwards with a ‘Make America Great Again’ cap, told his American interlocuters that their policies were “extremely regrettable” and “strongly urged them to reconsider.” Japanese Prime Minister Ishiba Shigeru admitted bilateral talks remain “challenging.” He said this week he would not concede to all of Trump’s demands.
On Sunday, Trump posted examples of “non-tariff cheating,” including currency manipulation, transshipping, and — using Japan as an example — “protective technical standards.” Trump has previously called on Tokyo to increase defence spending and recently complained that, “we pay hundreds of billions of dollars to defend them, but they don't pay anything."
Tariffs, taunts cool Japanese attitudes towards U.S.
These digs, paired with other controversial moves by the Trump administration, appear to be eroding the U.S.’s reputation in Japan: a new Ipsos survey shows just 47 per cent of Japanese respondents believe the U.S. will have “a positive influence” on world affairs over the next decade — a drop of 20 percentage points compared to October 2024. (Canadian respondents’ faith in the U.S. plummeted to an all-time low of 19 per cent.)
Japanese newspaper Asahi Shimbun, meanwhile, implored Ishiba to “question as much as possible [Trump’s] distorted policies and understanding,” calling his trade tactics “outrageous.”
The same paper published a poll suggesting 70 per cent of Japanese voters are “pessimistic” about Ishiba — whose government is increasingly unpopular at home — negotiating a good deal with Trump. Politico reported Wednesday that a genuine trade deal is months away, but that the two countries could sign a more broad-strokes agreement soon.
On Tuesday, the International Monetary Fund slashed Japan’s growth forecast for 2025 to 0.6 per cent. Canada’s GDP is expected to grow by 1.4 per cent.
Wong plays matchmaker
To some, Trump’s ‘Liberation Day’ sounded the death knell of rules-based global trade: Singaporean Prime Minister Lawrence Wong said following Trump’s announcements that “we are entering a new phase in global affairs — one that is more arbitrary, protectionist, and dangerous.”
All is not lost, however: in a wide-ranging lecture last week, Wong acknowledged that there is a “strong and growing impulse within the U.S. to turn inward,” but encouraged other countries to “reinforce the multilateral trading system.” He pitched a formal partnership between the 12 economies of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the 27-member European Union.
New Zealand Prime Minister Christopher Luxon floated the same idea earlier this month. Together, the blocs would be responsible for about 35 per cent of global economic output.
Canada, as a member of the CPTPP and signatory to the Canada-EU Comprehensive Economic and Trade Agreement, could play a key role in fusing the two blocs.
Both Liberal Leader Mark Carney and Conservative Leader Pierre Poilievre have pledged, if elected, to expand and diversify Canada’s trade abroad. Carney’s platform commits to “build stronger links with our partners in Europe and Asia,” while Poilievre’s plan entails a “free trade and mobility agreement” with the U.K., Australia, and New Zealand.
