Trump Tariffs May Push More Countries Toward China

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The Trump administration has stepped up its moves to threaten other countries with tariffs. Its self-righteous attitude, showing little regard for the global trade order, constitutes a major problem. Japan should join the rest of the international community in strongly urging the United States to exercise restraint.

President Donald Trump has ordered the introduction of reciprocal tariffs. Taking effect as early as April, they would raise US tariffs to the same level as trading partners, says the White House. Trump also indicated he intends to raise tariffs on US auto imports from April 2.

America has already imposed additional tariffs on China, Canada, and other countries, in addition to tariffs on steel and aluminum. Moreover, the new reciprocal tariffs would be applied to a wide range of countries, regions, and products. There is significant worry that the negative impact on the global economy could become significantly stronger.

Acknowledging the Discontent

Trump is keenly aware of the unfairness inherent in tariffs. Emerging countries tend to impose high tariffs on imported goods as they develop their own domestic industries.

Even among developed countries, the difference between the 2.5% automobile tariff in the United States and the 10% tariff in the European Union is now viewed as problematic. American discontent with the current situation cannot be totally rejected.

*Cars wait to be exported at Daikoku Wharf in Yokohama*.

However, the tariff rates of each country and region have been determined through long-term negotiations under the aegis of the World Trade Organization and other institutions. Those processes take account of the economic and social conditions of each country and region. It is too highhanded to suddenly impose mutual tariffs without considering the full situation.

Eliminating Tariffs and Other Barriers

This could be a strategy to pave the way for concluding deals. However, if the other party is forced to make unilateral concessions, it will leave a lasting legacy of bitterness.

Nor should we overlook the fact that this represents an attempt to use non-tariff barriers as a justification for reciprocal tariffs.

The trade agreement reached between Japan and the United States during the first Trump administration brought the elimination of tariffs on industrial products and other items.

Nonetheless, the US has long contended that Tokyo's automobile safety standards hinder the export of American cars to Japan. This time, there are concerns that the same issue will be brought up again.

Seeking Mutually Beneficial Relationships

Aside from regulations and subsidies, the Trump administration also has concerns about foreign tax systems such as the European Union's value-added tax. However, it is unacceptable for the US to interfere in the domestic affairs of other nations in the name of reciprocal tariffs. Moreover, there must also be increasing vigilance to prevent the arbitrary imposition of high tariffs on Japanese goods.

*President Trump and Prime Minister Ishiba shake hands on February 7 in Washington. (©Prime Minister's Office)*

If the United States government continues to ignore the idea of mutually beneficial relationships with other countries, distrust of the US will grow among developed and emerging countries alike. The result could be to push more countries to become dependent on China.

We urge the Trump administration to coolly assess whether such a development would be in the national interest of the United States.

Author: Editorial Board, The Sankei Shimbun

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