Japan found itself at the target of President Donald Trump’s aggressive trade offensive, facing a 25% tariff on imported vehicles, a 24% levy on a range of other goods, and a sweeping 10% universal baseline tariff on all imports. In a notable shift in tone, however, Trump simultaneously declared a 90-day moratorium on new tariffs for around 70 countries, signaling the start of a high-stakes period of tariff negotiations.

The Japanese government expressed its discontent with these measures, with Prime Minister Shigeru Ishiba describing them as "extremely disappointing and regrettable". In a striking and impassioned speech to Japan’s House of Representatives, opposition lawmaker Shinji Oguma criticized Trump’s tariff aggression, labeling it “extortionist”. The speech, which has gone viral globally, reflects growing anxiety in Tokyo over the future of US-Japan economic relations. Oguma’s central charge: Trump’s approach to tariffs and bilateral trade was not just transactional, but coercive, and Japan, he warned, must not fall victim to what he termed “US extortion.”

Oguma’s recent remarks strike at the heart of that discomfort. He accused the US of threatening Japan’s economic autonomy by forcing one-sided negotiations and failing to treat its longstanding ally as an equal partner. Using fiery rhetoric, he warned that Trump's trade ideology  -- “America First” at all costs -- risked unraveling decades of trust and interdependence.

The US-Japan economic partnership is one of the most prevailing and strategically significant in the postwar world. But it has never been without friction. Oguma’s speech is not a sudden outburst; it is the culmination of decades of US economic and political pressures on Japan, and policy divergence, a boiling-over of Japanese frustration, catalyzed by the Trump administration’s unjustified use of tariffs. 

The data clearly illustrate the long-standing economic relationship and how Trump has threatened it in an instant.

In trade in goods, Japan has long maintained a trade surplus with the US, a trend that dates back to the late 1960s. In 2024, Japan exported $148.2 billion in goods to the US, with automobiles, vehicle parts, machinery, electronics, and agricultural products accounting for a significant portion. In contrast, US exports to Japan amounted to only $80.2 billion, driven by key products such as aircraft, machinery, semiconductors, pharmaceuticals, automotive parts, and agricultural goods. This disparity results in a bilateral trade deficit of $60 billion for the United States in goods, a persistent figure that continues to attract scrutiny from American policymakers.

Yet this headline figure ignores the full picture.

In trade in services, the United States holds a clear advantage. Since the 1980s, the US has maintained a trade surplus in services with Japan, as Japan’s economy evolved and services trade expanded. In 2024, the US exported $47.1 billion in services to Japan, including finance, insurance, professional services, intellectual property, and business services, resulting in a trade surplus of $15.9 billion. These figures surpassed Japan’s $31.2 billion in services exports to the US in the same year, with Japan’s exports primarily consisting of shipping, logistics, finance, and intellectual property licensing. Travel, education, and transportation services also heavily favor the US.

Investment has long been a pillar of Japan and the US economic engagement. In 2023, the United States received approximately $783.3 billion in foreign direct investment (FDI) from Japan, making it the largest foreign investor in the US. The manufacturing sector was the primary recipient of this investment, totaling $375.7 billion, with Japanese companies significantly contributing to US employment, particularly in manufacturing. Japanese companies like Toyota, Honda, Subaru, and Daikin operate dozens of plants across the US and have spent decades investing in American communities. Moreover, Japanese investors also invested in infrastructure in the US, including high-speed rail and renewable energy projects. Japan has also become a vital partner in the US tech ecosystem. Lately, SoftBank has committed to invest in US artificial intelligence infrastructure. Likewise, in 2024, Microsoft announced a $2.9 billion investment in Japanese AI infrastructure, with plans to open two new data centers and launch major talent exchange programs between Seattle and Tokyo.

Oguma’s speech channels this broader strategic pivot. His appeal for Japan -- and by extension, other countries -- to stand up against American “extortionists” is a call for Tokyo to craft a more independent, balanced, and sovereign economic strategy, one that builds resilience not by retreating from globalization, but by diversifying its partnerships.

To move forward, Japan must double down on regional integration. In addition to strengthening its commitment to the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement, Japan should continue to deepen its ties with ASEAN and other East Asian nations. The bilateral Japan-ASEAN Comprehensive Economic Partnership (CEPA) offers a platform for Japan to optimize its economic engagement with Southeast Asia, particularly Indonesia, one of the region’s fastest-growing economies. By leveraging both RCEP and CEPA, along with its strategic partnership with Indonesia, Japan can not only bolster its trade relations within the region but also buffer itself from the volatility of US policy shifts, thereby recalibrating toward growing regional demand.

Japan and its East Asian neighbors should strengthen intra-regional trade and investment flows. In 2000, intra–East Asian trade accounted for roughly 45% of the region’s total trade; by 2023, this figure had inched up to around 53%, still far below the level of intra-EU trade that is around 67%. There is enormous room for growth, particularly through supply chain integration, digital connectivity, and green infrastructure financing. Investments in ASEAN, Korea, and China can generate spillovers that benefit Japan’s industrial base and innovation ecosystem.

Shinji Oguma’s speech should not be interpreted as anti-Americanism, but rather as a strong reminder that even the closest allies deserve fair treatment. Oguma's stance reflects a broader concern, not only for Japan but for the global economy, regarding the implications of Trump’s short-sighted unilateral trade policies. It underscores the importance of upholding the multilateral trading system and maintaining equitable international trade relations.

The relationship between the US and Japan, as well as with the broader international community and the global economy, is far too vital to be reduced to the narrow focus of tariffs and trade deficits.

It must be anchored in a long-term vision of shared prosperity, mutual respect, and collective dignity.

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The views expressed in this article are those of the editorial board of The Jakarta Globe.