In the aftermath of Donald Trump’s presidency, the economic ripples of his aggressive trade policies continue to be felt worldwide. The tariffs he imposed on key trading partners, particularly China and, to a lesser extent, Japan, have reshaped the global trade landscape. For China and Japan, these tariffs pose significant challenges, forcing both nations to consider how best to protect their economic interests.
One of the most pressing questions is whether the two Asian powers should join forces to counter U.S. trade pressures or address these challenges individually. While a collaborative approach might seem logical at first glance, this article argues that China and Japan are better off tackling these issues on their own. By doing so, they can maximize their leverage with the United States and potentially create a “divide and conquer” dynamic to their advantage.
The Tariff Wars and Their Impact
Trump’s trade war primarily targeted China through tariffs on hundreds of billions of dollars’ worth of goods, justified as a response to alleged unfair trade practices. These measures triggered a retaliatory spiral, with China imposing its own tariffs on U.S. products. Japan, while not directly embroiled in the same way, faced U.S. tariffs on steel and aluminum and was pressured to make concessions in trade negotiations.
For both countries, these measures disrupted trade flows and created economic uncertainty. China’s export-driven economy faced significant headwinds, while Japan found itself squeezed between its reliance on the U.S. market and its ties to China. Navigating this terrain has been no easy task, especially with broader geopolitical tensions complicating matters.
Why Independent Strategies Make Sense
China, A Global Power Asserting Its Influence
China has been the primary target of U.S. trade policy and has responded with a mix of countermeasures and domestic economic reforms. Beijing’s long-term strategy focuses on reducing dependence on Western markets by expanding trade partnerships, investing in domestic innovation, and advancing initiatives like the Belt and Road.
Partnering with Japan to counter U.S. tariffs might seem like a way to bolster its position, but it could also dilute China’s ability to project itself as a strong, independent global power. China prefers bilateral negotiations, where it can use its vast market and manufacturing dominance as leverage. By acting alone, Beijing can directly confront the U.S. while showcasing its resilience and ability to navigate global challenges on its own terms.
Japan Balancing Alliances and Economic Interests
Japan’s position is more nuanced. Unlike China, Japan is a close U.S. ally, tied to Washington through a robust security alliance. This relationship gives Japan unique leverage in trade negotiations, as it can frame its economic policies as part of a broader strategic partnership with the U.S.
Taking an independent approach allows Japan to emphasize its role as a reliable ally while negotiating for exemptions or more favourable terms. Japan’s involvement in multilateral agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) further strengthens its position as a proponent of free trade. Aligning too closely with China could undermine these efforts and raise concerns in Washington about Japan’s loyalty.
