President Trump has declared a 20-40% tariff barrage on 150 nations effective August 1. Japan and South Korea—key U.S. allies—face immediate impact. Citing trade deficits, Trump imposes 25% tariffs on all imports from Japan starting August 1, 2025, threatening further hikes if Japan retaliates.
In response, Japan's Prime Minister Shigeru Ishiba vowed an uncompromising defense of national interests, pledging to reduce U.S. dependence in security, energy, and agriculture.
Former Japanese Prime Minister Yukio Hatoyama warned while attending the 13th World Peace Forum recently held in Beijing, China: "Reasoning with Trump is futile—like arguing with a crying child. He'll make you a bullying target." Hatoyama urged strategic patience: "Tariffs will hurt but not collapse Japan's economy. We must endure limited pain while America inflicts disproportionate harm on its own consumers."
Trump's playbook repeats against the EU: a 30% tariff threat escalating to 50% if no deal is reached by August 1. Former EU Council President Herman Van Rompuy felt confident in seeking "sustainable solutions for mutual interests." In fact, the EU has delayed €21 billion in retaliatory tariffs to buy negotiation time. With the U.S. as its top export market, Brussels faces catastrophic economic exposure.
Former Australian Foreign Minister Bob Carr revealed the allies' counter-strategy: urgent trade diversification. Australia is finalizing deals with the EU, India, and the UAE—"the Gulf's trade hub." Carr urged regional allies: "Japan and South Korea must support Australia (and vice versa) in legitimately resisting U.S. bullying."
Behind Trump's letters lies a seismic shift: America replaces shared values with transactional deals. He's building a self-centered trade web forcing the world to accept one rule—no allies, only interests. As August 1 looms, global trade braces for impact.
Reporter: Jersey Kwok
Text: Jersey Kwok
Video Script: Jersey Kwok
Video: Wiingheng Deng
Video Cover: Cai Junru
Editor: Steven Yuen, James, Shen He
