News
  • Login
  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Tuesday, July 29, 2025
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Belgian Grand Prix: How Lando Norris lost out to Oscar Piastri

    Southern European heatwave fans multiple wildfires

    IS-linked rebels accused of killing Christian worshippers in Komanda

    Thailand and Cambodia agree to ‘immediate and unconditional ceasefire’

    Pro-Ukraine hacker group claims cyber-attack

    Fabio: The Fluminense history maker with his eyes on Peter Shilton

    WHO warns of Gaza malnutrition as Jordan, UAE resume aid airdrops

    Who are the winners and losers in US-EU trade deal?

    Can you un-bleach coral? BBC visits remote reef to find out

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Plane makes emergency landing at East Midlands Airport after tyre puncture

    ‘Hardline’ BMA blocks emergency pleas for strike doctors to work

    SFA bring in aviation referees to help with VAR communication

    Man pleads not guilty to ‘much loved’ Ynyshir dad’s murder

    Lioness star Chloe Kelly’s ‘Omagh blood’ helped win Euros says relative

    Nurses union to reject pay deal as strike vote looms

    Anti-migrant protests continue at Epping hotel

    Prayer service to be held in County Clare for mother and children

    Public help identify unknown cyclist who died at roadside in Helensburgh

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Why is River Island in trouble?

    Government considering having borrowing assessed once a year

    US-China talks restart as hopes grow for trade war truce extension

    Plans for pubs to get greater protection from noise complaints

    Free summer swimming lessons for 6,000 Wiltshire children

    Four more traders appeal rate-rigging convictions after Supreme Court ruling

    Retail sales in June boosted by hot weather

    Why is River Island in trouble?

    UK vehicle making hits lowest level since 1953, excluding Covid

  • Tech
  • Entertainment & Arts

    Dancers say Lizzo ‘needs to be held accountable’ over harassment claims

    Freddie Mercury: Contents of former home being sold at auction

    Harry Potter and the Cursed Child marks seven years in West End

    Sinéad O’Connor: In her own words

    Tom Jones: Neighbour surprised to find singer in flat below

    BBC presenter: What is the evidence?

    Watch: The latest on BBC presenter story… in under a minute

    Watch: George Alagiah’s extraordinary career

    BBC News presenter pays tribute to ‘much loved’ colleague George Alagiah

    Excited filmgoers: 'Barbie is everything'

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Business Economy

How Japan shaped Trump’s perspective on tariffs

February 8, 2025
in Economy
9 min read
250 3
0
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Nada Tawfik

New York correspondent

Getty Images Black and white photo of Donald and Ivana Trump stepping off the Trump Princess yacht. She is wearing a dress and he is wearing a dark suit with a white tie. The yacht is white and the sea is in the background.Getty Images

Donald and Ivana Trump disembark the Trump Princess yacht in New York in 1988

When Donald Trump’s fortunes took a downturn in the 90s and he needed to raise cash fast, he sailed his 282ft (85m) superyacht, the Trump Princess, to Asia hoping he could attract Japan’s wealthy.

It wasn’t the first time the businessman had sought out Japanese buyers or lenders for his projects.

In the cut-throat world of New York real estate, Trump had a front-row seat from his Fifth Avenue skyscraper of Tokyo’s buying spree in the 80s of iconic US brands and properties, including Rockefeller Center.

It was then that his worldview on trade and America’s relations with its allies was formed, and his fixation on tariffs, a tax on imports, began.

“He had a tremendous resentment for Japan,” says Barbara Res, a former executive vice-president at the Trump Organization.

He watched with jealousy as Japanese businessmen were viewed as geniuses, she says. He felt America wasn’t getting enough in return for assisting its ally Japan with military defence.

Trump often complained that he had difficulties doing deals with large groups of Japanese businessmen.

“I’m tired of watching other countries ripping off the United States.”

That Trump quote could’ve been pulled from 2016, but it’s actually from the late 80s when he made an appearance on CNN’s Larry King Live, around the time he first floated his name as a potential presidential candidate.

Fresh from sharing his business philosophy in his 1987 book, The Art of the Deal, Trump went on a tirade against America’s trade policies in national interviews.

In an animated interview with Oprah Winfrey before a live studio audience on The Oprah Show, he said he would handle foreign policy differently by making the country’s allies “pay their fair share”.

He added that there wasn’t free trade when Japan was “dumping” products into America’s market but making it “impossible to do business” there.

Getty Images Donald and Ivana Trump sat on chairs on Oprah's set. He is wearing a dark suit and red tie. She is wearing a red suit.Getty Images

Donald and Ivana Trump on Oprah Winfrey Show in April, 1988

Jennifer Miller, an associate professor of history at Dartmouth College, said others shared his concerns about the economy at the time.

Japan provided competition for US manufacturing, particularly in consumer electronics and cars. As US factories were shuttering and new Japanese brands entered the market, pundits were talking about Japan surpassing the US as the world’s leading economy.

“Trump is sort of symbolic of a lot of people who were kind of questioning American leadership in the American-led international order, and whether it actually served the United States,” Prof Miller says.

Before his Oprah appearance, Trump had spent almost $100,000 to release an “open letter” in full-page ads in three major US newspapers.

The headline read: “There’s nothing wrong with America’s Foreign Defense Policy that a little backbone can’t cure.”

In it, he said Japan and other nations had been taking advantage of the US for decades. He claimed “the Japanese, unimpeded by the huge costs of defending themselves (as long as the United States will do it for free), have built a strong and vibrant economy with unprecedented surpluses”.

Trump believed the obvious solution was to “tax” these wealthy nations.

“The world is laughing at America’s politicians as we protect ships we don’t own, carrying oil we don’t need, destined for allies who won’t help,” he wrote.

Watch: Donald Trump opens up in 1998 BBC interview on surviving financial loss

More on Trump tariffs

The ad served as a potent introduction to Trump’s foreign policy vision, according to Prof Miller. One built on the zero-sum belief that allies are freeloaders and that the liberal internationalist approach which had dominated since World War II was weak and foolish in a competitive world. The solution, he argued, was a more aggressive, protectionist trade policy.

“I think that’s one reason he likes tariffs so much, is they fit not only with his transactional ideology but his sense of himself, which is very deeply rooted as this successful dealmaker,” she said. “And the fact that tariffs can be threatened; they can be dangled over another country.”

Clyde Prestowitz headed negotiations with Japan during the Reagan administration as counselor to the secretary of commerce. A longtime critic of free-trade policies, he said nobody who was intellectually serious was affiliated with Trump or his simplistic approach at the time. He argues that the president hasn’t offered a real solution to the problems he’s raised.

“Tariffs are kind of a showy thing that you can say, look what I did, I banged those guys… so you know, you can be a tough guy. Whether or not they are effective in any way is really open to discussion.”

Mr Prestowitz believes the real problem then and now is that the US doesn’t have a strategic manufacturing policy, despite complaining about unfair trade.

Of course, fears of Japan’s rise calmed over time and now it’s an ally. Instead it’s China that is the US’s fiercest corporate competitor. This week Trump welcomed Japan’s prime minster into the Oval Office as one of his first foreign visitors.

Getty Images Composite picture of Trump and Prime Minister Shigeru IshibaGetty Images

Trump and Prime Minister Shigeru Ishiba

But Donald Trump’s governing philosophy is still the same as when he was a young real estate developer. He still believes just as strongly in tariffs as a tool to pressure other countries to open their markets and reduce trade deficits.

“He just says this all the time to anybody who will listen whenever anybody asks, and that’s been true for 40 years. And in fairness to him, you know that is a very natural way to view international commerce,” said Michael Strain, an economist with the conservative American Enterprise Institute.

He says students often share Trump’s intuitive thinking about the economy, and one of the big challenges that professors face is convincing them that their understanding is wrong.

Mr Strain says despite Trump’s hold on the party, with a stance that has upended decades of Republican embrace of free trade, he doesn’t think he’s convinced sceptical lawmakers, business leaders and economists.

The sticking points remain that his views that foreign imports are bad, that the size of the trade deficit is a useful measure of policy success or that the ideal state for the US economy is to only import goods that cannot physically be made in the US.

Mr Strain believes threats to increase tariffs on US allies could reduce business investment and weaken international alliances.

Joseph LaVorgna, a chief economist of the National Economic Council during Trump’s first term, believes there’s been too narrow a focus on tariffs and not enough of an attempt to understand the big picture of what Trump is trying to accomplish.

He says the president wants to galvanise domestic industry, in particular high-tech manufacturing.

The administration, he explains, feels they can encourage more corporations to come to the US using tariffs, combined with deregulation, cheaper energy and lower corporate taxes, if enacted by Congress.

“I think that President Trump understands something which is very important, being a businessman and being transactional, and that is free trade is great in theory but in the real world you need to have fair trade and that’s a level playing field.”

He is betting Donald Trump is right. Few Republicans have publicly opposed the president as he demands loyalty to his agenda.

Still, some who have remained silent understand that their constituents could be impacted by rising prices, and are hoping they can convince Trump not to follow through with his beloved tariffs.



Source link

Tags: JapanperspectiveshapedtariffsTrumps

Related Posts

Government considering having borrowing assessed once a year

July 28, 2025
0

The UK government is considering having the public finances formally assessed only once a year following a suggestion from...

Retail sales in June boosted by hot weather

July 25, 2025
0

Tom EspinerBusiness reporter, BBC NewsGetty ImagesRetail sales rebounded in June as the hot weather boosted fuel and supermarket sales,...

UK vehicle making hits lowest level since 1953, excluding Covid

July 24, 2025
0

Simon JackBusiness editorGetty ImagesBritish car and van production in the first half of this year has hit its lowest...

  • Ballyjamesduff: Man dies after hit-and-run in County Cavan

    510 shares
    Share 204 Tweet 128
  • Somalia: Rare access to its US-funded 'lightning commando brigade

    508 shares
    Share 203 Tweet 127
  • Google faces new multi-billion advertising lawsuit

    507 shares
    Share 203 Tweet 127
  • Uganda arrest over deadly New Year Freedom City mall crush

    507 shares
    Share 203 Tweet 127
  • George Weah: Hopes for Liberian football revival with legend as President

    506 shares
    Share 202 Tweet 127
  • Trending
  • Comments
  • Latest

Ballyjamesduff: Man dies after hit-and-run in County Cavan

August 19, 2022

Somalia: Rare access to its US-funded 'lightning commando brigade

November 23, 2022

Google faces new multi-billion advertising lawsuit

March 31, 2023

Stranger Things actor Jamie Campbell Bower praised for addiction post

0

NHS to close Tavistock child gender identity clinic

0

Cold sores traced back to kissing in Bronze Age by Cambridge research

0

Plane makes emergency landing at East Midlands Airport after tyre puncture

July 28, 2025

Why is River Island in trouble?

July 28, 2025

Government considering having borrowing assessed once a year

July 28, 2025

Categories

England

Plane makes emergency landing at East Midlands Airport after tyre puncture

July 28, 2025
0

Tom OakleyBBC News, East MidlandsEast Midlands AirportEast Midlands Airport said the plane declared an emergency on Monday afternoonA passenger...

Read more

Why is River Island in trouble?

July 28, 2025
News

Copyright © 2020 JBC News Powered by JOOJ.us

Explore the JBC

  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

Copyright © 2020 JBC News Powered by JOOJ.us

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
News
More Sites

    MORE

  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More
  • News

    JBC News