U.S. President Donald Trump has announced substantially higher tariff rates for all his country's trading partners. In addition to a 10% baseline tax on imports from all nations, higher tariff rates have been slapped on imports from countries that run huge trade surpluses with the United States. As a result, Japan faces a 24% levy on its products while the rates for the European Union, China, India and other countries hit the 20-30% range. This is extremely harsh.

Trump is forcing through the high tariff policy the world over by wielding his "America First" doctrine. It's nothing but an outrageous act that will destroy the post-World War II international economic order.

After Trump returned to the White House, his administration has imposed higher tariffs on individual products including steel and automobiles, but the latest measure encompasses the entire world. His hard-line protectionist stance has become even clearer.

Trump claims that he is reviving the American manufacturing sector by slashing trade deficits. Under the banner of "reciprocal tariffs," he flattered himself for his plans to reverse the "unfair trade" practices by countries that "have ripped us off" and proclaimed April 2, the day he unveiled the fresh tariffs, as "Liberation Day."

Serious impact on the Japanese economy

Trump is apparently putting his country's interests first and does not mind throwing other nations into chaos. His assertions are way too self-serving.

He has not specified the basis for calculating the tariffs. He has accused Japan of imposing "a 700% tariff" on American rice, which is untrue. It's unreasonable for him to cite inaccurate data.

Given its enormous market, the U.S.' move to shut out foreign products means a significant decline in exports from other countries, exacerbating their economies.

The EU, China and other countries have sharply reacted to the higher tariffs and are mulling retaliatory tariffs on U.S. products. If the trade war escalates, it will deal a serious blow to the global economy.

Japan will also take a direct hit from the tariff order.

In 2024, Japan's exports to the U.S. surpassed 21 trillion yen (approx. $144 billion), accounting for roughly 20% of total exports and making the U.S. its biggest trade destination. The new tariffs could force Japanese companies to curb their production of industrial goods, inevitably pushing down their business performances.

The Nomura Research Institute Ltd. estimates that the set of U.S. tariffs, including those on automobiles, will likely drive down Japan's annual economic growth by around 0.8%. As Japan's real growth remained a mere 0.1% last year, the high tariffs run the risk of leaving the Japanese economy falling back into negative growth. Due to the increasingly uncertain economic outlook, the Nikkei stock average plunged April 3 by more than 1,600 yen (about $11) at one point.

There are concerns that the heavy tariffs will take a toll on Japan's small and midsize companies, casting widespread negative impacts on their wages and employment. The Japanese government must take all possible steps to protect people's livelihoods.

While Trump raved about the sweeping tariffs as a "declaration of economic independence," the international free trade framework will be driven to the verge of collapse if he is to isolate the U.S. from the rest of the world by the high tariff walls.

After World War II, countries have mutually lowered tariffs on each other's products through numerous discussions. This has spurred trade, serving as the driving force for global economic growth.

Behind this was remorse over prewar protectionism. During the Great Depression in the early 20th century, major powers blocked foreign products by levying high tariffs on them. Due to the emergence of economic blocs, conflicts among countries intensified, leading to global warfare.

After the war, then U.S. President Franklin Roosevelt and British Prime Minister Winston Churchill agreed to the 1941 Atlantic Charter, forming the basis for the postwar international order.

The joint declaration stipulates that the two leaders "will endeavor, with due respect for their existing obligations, to further the enjoyment by all States, great or small, victor or vanquished, of access, on equal terms, to the trade and to the raw materials of the world which are needed for their economic prosperity." The statement set forth the principle that international collaboration is precisely what brings about peace and economic advancement.

Yet the U.S., which has spearheaded the cause, is now about to relinquish its own role in the initiative.

Protecting free trade system by all means

Professor Tsuyoshi Kawase at Tokyo's Sophia University raised the alarm about the Trump tariffs, saying, "The U.S. introduced reciprocal tariffs with different rates for each country with the apparent aim of bringing them into bilateral negotiations to extract concessions from the other party through intimidation. This is an outright denial of multilateral cooperation, and could push the world into the law of the jungle, where major powers dominate other countries at their own will."

Other countries need to join hands to protect the free trade framework by all means. If the free trade zone is expanded to counter protectionism, Washington will no longer be able to shrug it off.

Japan in particular has a significant role to play as it has benefitted from the free trade system.

Tokyo has called on the Trump administration to exclude Japan from the high tariffs, only in vain. Yet Prime Minister Shigeru Ishiba has vowed to keep asking for tariff exemptions.

It is essential to take a resolute stand against the Trump tariffs. If Japan alone attempts to escape the levies, it could end up encouraging the policy.

The U.S. also has to pay the price for its high tariffs. Prices for a wide range of imported products will sharply rise, straining household budgets. It is the low-income demographic who rallied behind Trump in the 2024 presidential race that will take the brunt of his policy.

The U.S. itself has greatly benefitted from free trade, being home to many businesses operating across borders. Prime Minister Ishiba and other national leaders are urged to persuade Trump up front on the significance of an open-market economy.