Recently, the visit of Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), to Japan caused a stir in the field of international trade. On the morning of May 13th, she held intensive talks with Japanese Prime Minister Shinichi Abe and a group of key cabinet members. Following this, both sides issued a joint press release, firmly emphasizing the unshakable nature of the multilateral trading system.
In the current context where U.S. trade protectionism is rampant, this event instantly captured global attention and also made the delicate relationship between Japan and the United States the focus of public scrutiny.
Since Trump's return to the White House, U.S. trade policies have become increasingly aggressive, with tariff sticks being wielded everywhere. First, a 25% tariff was imposed on imported cars in April, and on May 3rd, a 25% tariff was levied on over 200 core automotive parts. Then an executive order was issued to impose a "reciprocal tariff" of 24% on all Japanese goods exported to the U.S. This series of actions dealt a heavy blow to the Japanese economy.
The automotive industry holds great importance in Japan's economy, accounting for 50% of manufacturing output and providing 5.58 million jobs, which make up 8% of total employment. The U.S., as Japan's largest overseas market for automobiles, accounts for 30% of Japan's automobile exports. With the implementation of U.S. tariff policies, Japanese automakers were hit hard. Industry giants like Toyota and Nissan are expected to see their profits drop by more than 30%, while brands such as Mazda face difficulties, even the risk of losses or exiting the U.S. market.
Estimates show that if the U.S. tariff policies continue, Japan's GDP will decline by 0.59%. It should be noted that Japan's GDP growth rate in 2024 is only 0.1%, so this decline is truly devastating.
While suffering severe economic setbacks, Japan has long been militarily dependent on the U.S. After World War II, the U.S. implemented military occupation in Japan and maintained a large number of military bases there. The number of U.S. troops stationed in Japan reached a maximum of 56,000, and even now maintains a certain scale.
Japan not only allows the stationing of U.S. troops but also bears 80% of the cost of maintaining these troops, approximately $1.5 billion annually. The U.S., through its military presence, tightly controls the development of Japan's military power and exerts profound influence on Japan's political and economic direction.
This military dependence has made Japan initially cautious in the face of U.S. trade bullying, reluctant to easily resist. However, as the impact of U.S. trade policies on Japan's economy grows larger, Japan has no choice but to begin reflecting and making changes. Especially after observing the economic negotiations between China and the U.S., where the U.S. canceled 115% of the tariffs on Chinese goods, Japan has been greatly inspired and its attitude has gradually hardened.
Prime Minister Shinichi Abe clearly stated that Japan would never sacrifice national interests to cater to the U.S. and would fully strive for the goal of 0% tariffs, firmly rejecting unreasonable tariff demands from the U.S. and refusing to sacrifice domestic agricultural interests for car trade. He also pointed out that Japan would prioritize national security and would not compromise national security for the sake of catering to the U.S. Economic Regeneration Minister Akira Agata has continued to negotiate with the U.S. side, firmly demanding the revocation of a series of tariff measures, including those on cars. Japan's stance of not bowing to the U.S. has broken the previous impression of Japan passively following the U.S. in its relations with America.
Japan's courage to confront the U.S. stems from multiple considerations. From an economic perspective, the automotive industry, as the pillar of Japan's economy, has been severely harmed by the U.S. tariff policies, directly affecting Japan's economic growth and employment. Data shows that under the threat of U.S. tariffs, profits of Japanese auto companies have declined, exports have been obstructed, and some companies have had to cut production capacity and lay off workers to cope. If Japan does not rise up against it and let the U.S. dominate, the economy will suffer a heavy blow.
From the perspective of the international situation and its own development strategy, Japan has realized that blindly accommodating the U.S. cannot bring true respect and benefits. Only by firmly safeguarding its own interests and actively participating in reshaping the international economic order can it take the initiative in global economic competition. Moreover, Japan has keenly sensed the changing global trade landscape, with many countries expressing dissatisfaction with U.S. trade protectionism. Japan's cooperation with the WTO is not only in line with international trends but also aims to seek more support and cooperation opportunities.
Japan's actions this time are significant. It is not only fighting for its own economic interests but also bravely challenging U.S. trade hegemony. In the current situation where the global trading order faces serious challenges, Japan's alliance with the WTO, despite its reliance on the U.S., is indeed rare in striving to maintain its own interests. An increasing number of countries are beginning to realize that only by uniting together and jointly safeguarding the multilateral trading system can they resist U.S. trade hegemony and achieve healthy and stable global economic development.
The outcome of the trade negotiations between Japan and the U.S. in the future is full of suspense. Can Japan continue to move forward resolutely on the path of safeguarding the multilateral trading system? How will the U.S. respond to Japan's "resistance"? These questions will affect the direction of the global trade landscape, and we will continue to follow them.
Original article: https://www.toutiao.com/article/7504268960951517730/
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