Arielle Busetto 
Donald Trump during his inauguration speech on January 20. (©Kyodo)
On January 20, Donald Trump was inaugurated as the 47th President of the United States. His speech and early actions set a decisive tone, signaling significant departures from his predecessor's administration and introducing new policy directions.
Summarizing his vision, he said: "The golden age of America begins right now." He added, "From this day forward, our country will flourish and be respected again all over the world. We will be the envy of every nation."
In a flourish of showmanship, touching on inflation, immigration, energy, and more, it felt like a dynamic start of the Trump 2.0 government.
Backtracking from the previous Joe Biden administration, Trump said: "Our recent election is a mandate to completely and totally reverse a horrible betrayal."
New announcements, such as the establishment of the Department of Government Efficiency, hinted at his broader goals of reshaping governance. For this, he is calling upon the help of entrepreneurs like Elon Musk and Vivek Ramaswamy.
More widely, tech CEOs Mark Zuckerberg and Tim Cook — among others from major companies — held front-row seats at Trump's inauguration.
From Japan, Foreign Minister Takeshi Iwaya was present at the ceremony. So was Akie Abe, former PM Shinzo Abe's widow. She was also one of the first people from Japan invited to visit Trump at Mar-a-Lago in December, after his election.
What does all of this mean for Japan? Below are key areas to watch.
Environment and Energy
One focus of Trump's speech was energy policy. He directly addressed energy as a root cause of inflation and economic stagnation, stating, "The inflation crisis was caused by massive overspending and escalating energy prices. That is why today I will also declare a national energy emergency."
He emphasized a pivot towards traditional energy sources, declaring his now ubiquitous slogan: "We will drill, baby, drill."
In addition, the US President signaled the retraction of Biden's energy policy and announced the end of the "Green New Deal." Along with these, he declared he was revoking the electric vehicle mandate.
One of his first moves was to withdraw the US from the Paris Agreement — an international environmental treaty — echoing his similar action at the start of his 2017 presidency. (The Biden administration rejoined the treaty in January 2021.)
For Japan, this signals potential challenges in fostering global cooperation on climate issues. A reduced emphasis on clean energy technologies such as EVs is also notable. It's an area where Japanese manufacturers like Toyota have made significant investments.
Tariffs and the Economy
Trump's longstanding support for tariffs remains a cornerstone of his economic policy. In his address, he proclaimed, "Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens." To implement this, he announced the creation of the External Revenue Service to oversee tariff collection.
The US President had been quoted in local media expressing his intent to impose a 25% tariff on goods from Canada and Mexico starting from February 1. Trump has also said in the past said he would impose tariffs on Chinese imports.
This stance could have vast ripple effects, though as of writing, the extent of them is still unclear.
Japanese automakers such as Nissan and Honda rely on Mexican manufacturing plants to export vehicles to the US, and are likely to face increased production costs.
On the economy, Trump's push to attract investment aligns with efforts by some Japanese businessmen. Softbank's chairman, Masayoshi Son, visited Trump in December 2024 announcing his plan to invest $100 billion in the US. On January 21, SoftBank Group, OpenAI and Oracle, announced that together they will invest $500 billion in artificial intelligence infrastructure in the US.
Those following the crypto market will know that Trump and his wife, Melania, have launched cryptocurrencies. Crypto investors can be expected to watch the market closely going forward.
International Affairs and Security
Aside from addressing America's border crisis, Trump's comments on international relations were sparse. Still, the presence of foreign dignitaries at his inauguration provided insights into his geopolitical priorities.
Breaking with tradition, Trump invited many international leaders and dignitaries. Italy's Prime Minister Giorgia Meloni and Argentina's President Javier Milei were present, for example. PM Meloni was among the first leaders to visit Trump at Mar-a-Lago weeks before his inauguration, suggesting that interpersonal relationships with the new US president might be becoming more prominent.
Japan's Foreign Minister Takeshi Iwaya attended the ceremony. Local media reported that it was the first time foreign ministers had participated. "It is a sign the Trump administration places importance on the Japan-US relationship," Iwaya commented to reporters before his departure.
From India, external affairs minister Dr Subrahmanyam Jaishankar was on hand. Australia's foreign minister Penny Wong also attended. These three invitees represent the Quad countries, an Indo-Pacific partnership comprising the United States, Japan, Australia and India.
Notably, Chinese Vice President Han Zeng also attended. His presence hinted at Trump's openness to dialogue with his counterpart in Beijing.
For Japan, these developments highlight continued cooperation within the Quad and an added emphasis on countering China's influence in the region.
From their presence, one can expect an evolving and dynamic geopolitical landscape with a new outlook on the world.
As Trump said in his speech, "During every single day of the Trump administration, I will, very simply, put America first." He also added, "Our power will stop all wars and bring a new spirit of unity to a world that has been angry, violent, and totally unpredictable."
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Author: Arielle Busetto
