Japanese Prime Minister Shigeru Ishiba of Vietnam and the Philippines. His mission is to deepen relationships across the region while navigating historic economic headwinds. The trip follows a series of tariff steps taken by U.S. President Donald Trump. These measures have hit hard Japan’s economy as well as Japanese businesses all over Southeast Asia.
Ishiba’s visit is particularly timely, as Japan has been grappling with the repercussions of Trump’s sweeping tariffs on imports, including cars, steel, and aluminum. As a result, these tariffs produced “severe effects” for Japanese sectors, causing them to reconsider manufacturing plans in the area. In recent years, many Japanese companies have shifted their operations to Vietnam and Cambodia to mitigate risks associated with these trade policies.
We expect the Japanese Prime Minister to make an engaged diplomatic offensive on leaders in both capitals. Most importantly, he wants to be attentive to the interests of Japanese firms. Ishiba promised to listen to them as he goes forward into putting together the complicated array of tariff actions at such a difficult and different time.
“We would like to listen carefully to the opinions and concerns of Japanese companies in the region and make use of that in how we deal with the tariff measures,” – Shigeru Ishiba
At the same time as the economic agenda, Ishiba’s trip takes place amid extremely heightened geopolitical tensions. For years, Vietnam and the Philippines have been engaged in escalating confrontations with Chinese vessels in the South China Sea. At the same time, Japan has faced increasingly intimidating encounters with Chinese paramilitary vessels close to contested features in the East China Sea. Deepening these relationships with Hanoi and Manila would give Japan valuable strategic partners in the face of these territorial rows.
Ishiba’s visit is vital for purely economic reasons. It helps shore up alliances in a region increasingly battleground to U.S.-China trade hostilities. The recent pause of “reciprocal” duties on Vietnam and Cambodia by Trump indicates a potential shift in trade dynamics that could benefit Japanese investments in these countries.
Japan has been the largest source of foreign direct investment in the United States. It is facing a crisis of uncertainty due to current tariff wars. Japan has the opportunity to take a proactive approach to address these challenges. The present diplomatic endeavor is largely premised on keeping stability in its lucrative economic relationships across Southeast Asia.
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