Trump Japan Trade: Potential Crunch Ahead

As of: October 27, 2025 5:28 a.m

The US President continues his trip to Asia. Next stop: Japan. The new head of government Takaichi and Trump have a lot in common politically – but there could be problems when it comes to the economy.

By Anna-Lou Beckmann, ARD Tokyo

It’s a short stay: US President Donald Trump is in Japan – the most important US ally in East Asia – for less than 48 hours. His first appointment is a visit to Emperor Naruhito. The two already know each other from Trump’s last trip to Japan in 2019, during his first term in office. At that time, the royal couple hosted a state banquet for the president. A reception tailored to your taste.

During Trump’s trip six years ago, the then Prime Minister of Japan Shinzo Abe relied on golf diplomacy and a joint visit to sumo wrestling. The beginning of a close partnership – if not perhaps even a friendship, which protected Japan from harsh US tariffs.

Hardly any differences between Trump and Takaichi

Japan’s new Prime Minister Sanae Takaichi wants to build on the connection back then. She has been in office for around a week and with Trump’s visit she is facing a major test. “To return Japanese diplomacy to a place where it thrives at the center of the world, I want to deepen my friendships with world leaders and clearly communicate what Japan wants to achieve,” Takaichi said. The 64-year-old is considered a conservative hardliner.

Observers – like scientist Tetsuo Kotani from the Japan Institute of International Affairs – expect a good relationship with Trump: “They have a very similar agenda, for example when it comes to restricting the immigration of illegal migrants to Japan or the United States. And they take a similar tough stance towards China,” says Kotani. Therefore, he sees little difference between Trump and Takaichi.

“America first” versus “Japan first”

But the economy could be in trouble. During his visit, Trump wants to ensure, among other things, that the customs deal he agreed with Takaichi’s predecessor in office continues to exist. But that could be exactly the problem, says Kotani. “When it comes to trade, ‘America first’ and ‘Japan first’ could clash. Before Takaichi was elected prime minister, she expressed frustration that the trade agreement with the United States was too one-sided,” says the expert. Because Japan has to invest 540 billion dollars in the USA. “That’s a huge sum. Japan actually needs such investments in its own country.”

According to expert Kotani, Takaichi Trump must also make it clear: support for Taiwan must not be part of trade negotiations with China. “If the security of Asian countries is sacrificed for such a deal, it could be a nightmare,” he says. For Takaichi, the visit is more than an inaugural visit – it is a test of her foreign policy strength. And their last chance to exert influence before Trump meets Xi Jinping in South Korea on Thursday. For negotiations that move the world.

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