How Will Japan PM and Asia Combat Tariffs?

New Delhi, Sep 8 (NationPress) On his journey to the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China, Prime Minister Narendra Modi undertook a two-day official visit to Japan in late August.

During talks with former Prime Minister Shigeru Ishiba of Japan, the leaders acknowledged their decade-long partnership and discussed avenues to enhance it further.

The two nations embraced a 10-year strategy to elevate the India-Japan Special Strategic and Global Partnership, with Japan promising to increase its investment in India to JPY 10 trillion (approximately USD 67 billion).

India and Japan also committed to collaborate in diverse sectors such as high-speed rail, metro systems, improving financial services, SMEs, agribusiness, and ICT initiatives.

Simultaneously, Japan’s chief trade negotiator Ryosei Akazawa unexpectedly canceled his visit to the US, a decision attributed to ongoing bilateral discussions that required further examination.

Conflicts persisted over Washington’s stance that President Donald Trump would have “full discretion” regarding the allocation of Japan’s USD 550 billion in investments and loans under the tariff agreement.

On September 4, President Trump enacted an executive order imposing a baseline 15 percent tariff on nearly all Japanese imports.

This agreement, as stated by the White House, reduced tariffs on Japanese automobiles from 25 to 15 percent and included Tokyo’s investment pledge.

Notably, the India-Japan agreement and the US tariff reduction were significant achievements for Ishiba.

On Sunday, he announced his resignation following the conclusion of negotiations between Japan and the US.

As the West scrutinized a potential Russia-India-China (RIC) alliance forming in Tianjin, there were whispers that Japan—absent from the SCO—might emerge as the fourth member of a new Quad.

Speculation arose that RIC could gain Japan’s support in countering US tariffs. However, Ishiba’s sudden exit has injected unpredictability into Tokyo’s strategic direction.

A unified coalition of China, Russia, India, and Japan could represent approximately one-third of global GDP and nearly 40 percent of the world’s population, creating unprecedented economic influence.

China and Japan alone contribute to more than half of this bloc’s output, while India’s rapid growth and Russia’s energy exports enhance collective resources. Economically, this alliance could transform trade routes, investment patterns, and technological standards across Eurasia.

In light of Japan's internal transitions and US protectionism, governments across East and Southeast Asia must recalibrate their trade and investment strategies.

China, adept at seizing opportunities, is likely to amplify its initiatives through the Regional Comprehensive Economic Partnership (RCEP). South Korea and ASEAN countries, facing competitive pressures, may hasten efforts to create alternative free-trade frameworks independent of US tariffs.

As time progresses, the prospects of a potential RICJ-led defense against trade tariffs will unfold with the new Prime Minister of Japan taking office.