This time, we flip to North Asia, analyzing the pledges, concessions, and trade-offs that Japan, South Korea, Taiwan, Mongolia, and North Korea made, or in some circumstances, averted, to safe higher phrases with Trump. China, given its distinctive place on this commerce panorama, shall be lined in a separate characteristic.
Japan: From Tense Menace to Managed Compromise
Japan was among the many first within the firing line. Trump’s Liberation Day speech floated tariffs of as much as 25% on Japanese autos and 50% on metal and aluminium. Tokyo scrambled to avert the complete pressure of those measures, in the end negotiating the speed down to fifteen%. Nonetheless increased than the single-digit tariffs Japan had lengthy loved, however far much less punishing than the unique risk.
To safe this discount, Japan pledged greater than US$550 billion in investments throughout US industries, from semiconductors and vitality infrastructure to shipbuilding, with Washington retaining 90% of the earnings.
It agreed to increase market entry for US items, boosting rice imports by 75% and committing to US$8 billion in purchases of corn, soybeans, and bioethanol yearly. Japan additionally eliminated restrictions on US vehicles and adopted American security requirements, whereas agreeing to purchase 100 Boeing plane and billions in US defence gear every year.
Nevertheless, confusion soon followed the July 31, 2025, Government Order issued by President Trump.
Each nations misinterpreted facets of the adjusted tariffs, notably on vehicles. Though that they had agreed on a 15% reciprocal tariff, it was unclear whether or not this price would change the present 27.5% auto tariff or be utilized on prime of it—elevating alarm over potential “tariff stacking” and particularly worrying Japan’s export-dependent auto business.
On June 16, PM Ishiba met U.S. President Donald J. Trump in Canada through the G7 Kananaskis Summit. Picture: Japan’s MOFA/Fb
In response to the uncertainty, Japanese commerce envoy Ryosei Akazawa travelled to Washington on August 5, 2025, to hunt readability and urge US officers to rapidly subject an govt order formalising the agreed phrases. His go to underscored the differing interpretations of the deal’s implementation and the significance of the tariff concessions to Japan’s auto sector.
By August 7–8, 2025, following negotiations, the US agreed to amend the July 31 order—making certain Japan wouldn’t face compounded tariffs, promising refunds for extra duties, and reaffirming the discount of auto tariffs to fifteen%. Akazawa known as the stacking error “regrettable” and famous this modification restored the agreed framework.
The connection between Trump and Japan has mixed moments of friction with pragmatic cooperation.
In his first time period, Trump often raised issues over Japan’s commerce surplus and defence contributions, however his private rapport with the late Prime Minister Shinzo Abe—strengthened by common golf video games—helped keep the soundness of the alliance.
In his second time period, underneath Prime Minister Shigeru Ishiba, the partnership stays strategically vital within the Indo-Pacific, though current tariff disputes underscore the sensitivity of financial preparations between the 2 international locations.
South Korea: Dodging the 25% Tariff Hammer
South Korea’s export-heavy economic system confronted comparable dangers. Liberation Day positioned Seoul underneath risk of a 25% tariff on exports to the US, notably autos, semiconductors, and metal. Inside weeks, a high-level delegation arrived in Washington to safe a greater final result.
The ensuing deal set the reciprocal tariff at 15%, overlaying even the politically delicate automotive sector. In alternate, South Korea promised US$350 billion in investments concentrating on US shipbuilding, semiconductor fabrication, batteries, and biotechnology, with the White Home claiming the US would seize a big share of the earnings. Seoul additionally agreed to buy US$100 billion in American vitality merchandise, together with liquified pure fuel and crude oil.
Whereas Trump’s public statements hinted at wider market openings, notably for agriculture, South Korea firmly resisted additional liberalisation for sensitive products like rice and beef. The connection between the 2 nations stays a cautious balancing act.
In Trump’s first time period, he overtly demanded larger funds for US troop presence and questioned the worth of the alliance. His unconventional diplomacy with North Korea typically bypassed Seoul altogether.
Now, underneath President Lee Jae-myung, managing Trump is seen as an financial and safety precedence—with Lee even saying he would “crawl through Trump’s legs” if essential to safe a great deal.
Taiwan: Increased Fee Displays Powerful Bargaining
Taiwan confronted one of many hardest beginning positions. Beneath Trump’s April 2 announcement, most of its exports to the US had been set to face a possible 32% reciprocal tariff, a extreme risk to the island’s export-reliant economic system.
Throughout a 90-day interim interval, Taipei secured a short lived 10% price whereas negotiating for a decrease ultimate determine. By late July, the 2 sides agreed on a 20% reciprocal tariff, increased than the 15% charges granted to Japan and South Korea, leaving Taipei at a relative drawback.
The centrepiece of Taiwan’s concessions was a US$100 billion funding pledge by Taiwan Semiconductor Manufacturing Firm (TSMC) for brand new fabrication crops in america, primarily in Arizona, set to be rolled out over the subsequent decade.
Taiwan additionally dedicated to growing imports of US liquefied pure fuel, crude oil, and agricultural merchandise, whereas Washington sought lowered non-tariff obstacles, notably on automobile imports and licensing guidelines.
Trump’s dealings with Taiwan have traditionally mixed strategic assist with transactional strain. In his first time period, he broke precedent by talking instantly with then-President Tsai Ing-wen, authorised main arms gross sales packages, and publicly criticised the island for “taking” US chip manufacturing jobs whereas urging increased defence spending.
Beneath President Lai Ching-te, Taiwan remains a critical US partner in the Indo-Pacific, however the increased tariff in comparison with different allies has stirred concern in Taipei. Negotiations to shut that hole are ongoing.
Mongolia: No Disaster, However Quiet Features
Mongolia’s commerce ties with the US are small, and Liberation Day tariffs mirrored that—the nation obtained the baseline 10% reciprocal price, avoiding the high-stakes brinkmanship seen elsewhere. Given the small scale of bilateral trade, no vital concessions had been required.
As a substitute, Washington and Ulaanbaatar centered on strategic and developmental cooperation. This consists of the US-funded Millennium Challenge Corporation compact to enhance Ulaanbaatar’s water infrastructure. Ongoing efforts to go the “Third Neighbour Trade Act” to grant duty-free entry for Mongolian cashmere and textiles, and collaboration on critical minerals to diversify provide chains away from China and Russia.
The non-public relationship was heat in Trump’s first term, marked by the 2019 White Home go to of President Battulga and a proper “strategic partnership” declaration. Beneath Prime Minister Oyun-Erdene, Trump’s second time period is predicted to proceed this low-tariff, high-strategy strategy.
North Korea: Sanctions, Not Tariffs
North Korea was the exception on Liberation Day, not due to particular remedy, however as a result of decades-old US sanctions already perform as a near-total commerce ban. The Trump administration’s purpose was not tariff discount, however denuclearisation in alternate for sanctions aid.
In his first time period, Trump held three unprecedented conferences with Kim Jong Un, constructing private rapport however failing to safe a verifiable disarmament deal. In his second time period, either side have signalled potential openness to dialogue, although Pyongyang insists it will not discuss denuclearisation. With commerce successfully non-existent, the connection stays outlined by high-stakes geopolitics reasonably than financial negotiation.
Assembly Between President Trump and Chairman Kim Jong Un in June 2019. Picture: Wiki Commons
From Tokyo to Taipei, Seoul to Ulaanbaatar, Trump’s reciprocal tariffs prompted North Asian leaders to weigh the prices and advantages of securing decrease commerce obstacles. For some, this concerned substantial funding commitments; for others, it supplied a chance to strengthen strategic relationships. In every case, the agreements mirrored each financial concerns and diplomatic positioning, underscoring how commerce coverage and broader bilateral relations are carefully linked within the present US strategy in its “America First” period.
-Asia Media Centre
