Japanese Government and Business Stiffen Resistance to Trump

Tokyo sees panic on Wall Street As Its Ally

When I arrived in Tokyo at the beginning of April, it looked as if Tokyo’s strategy for dealing with Trump’s trade war was to placate the bully. By the time I left three weeks later, Tokyo’s spine had stiffened. Moreover, business leaders—including the automakers hit with an ongoing 25% tariff—told the government they would rather endure the tariffs than cave in to outrageous demands that could lead Trump to make still more demands. What changed Tokyo’s stance was the panic in the financial markets that, on April 9th, forced Trump to retreat, albeit only partially and perhaps only temporarily. Japan sees these markets as its ally.

Japan has focused its agenda on items that barely change the trade deficit but stem from Trump’s own rhetorical ranks and is practicing the art of “delay, delay, delay.” Ishiba told the Diet that he’s in no hurry to reach a deal if it’s going to be a bad one.

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