Japan

Historically, Japan often found itself in the US’ crosshairs over trade and tariffs.

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If the 1980s trade war was due to auto exports, subsequent years saw both countries sparring over export of textiles, steel and semiconductors. In 2025 though, Japan chose to avoid a direct confrontation, and instead gave in to Trump’s demands.

That’s because passenger cars, the lifeblood of the Japanese economy, have the largest share of 24.3% of total export value to the US. The tariff uncertainty slumped exports to the US in July, recording the biggest monthly decline in four years. Perhaps fearing worse, the Japanese government struck a deal with Trump, which reduced tariffs on Japanese imports from 25% to 15% in return for the massive investment pledge.