The global free-trade system was dealt a major blow this month, when U.S. President Trump announced – and then mostly suspended – unprecedented and sweeping reciprocal tariff measures affecting 180 countries. World markets were rattled by this broad increase in tariffs, heightening the risks of a full-blown trade war, as the EU and China indicated potential retaliatory tariffs in response. The rationale behind the US tariffs is rooted in economic security, yet the excessive use of tariffs is breaking down the framework of the world’s free-trade system that was built in the aftermath of World War II.
These reciprocal tariff measures clearly violate the basic principles of the WTO (World Trade Organization). Even from the perspective of most-favored-nation treatment, altering tariff rates for each country is a clear violation. Raising tariffs beyond the promised upper limit (tariff restraints) by all countries participating in the WTO is a breach of contract. The U.S. may be citing GATT Article XXI (Security Exceptions) as a justification, but justifying the increase of global tariffs due to a trade deficit is an abuse that strays from the spirit of the article. The first Trump administration pointed to national security as its rationale for imposing tariffs on steel and iron, but this argument was rejected by the WTO. If a major country can use such reasoning to enact policies against individual nations, the affected countries will retaliate, resulting in a weakening of trade rules overall.
As a country that has benefited greatly from the free-trade system, Japan cannot ignore the current situation. Since World War II, Japan has achieved economic growth in an open market governed by international rules. It has also emphasized the rule of law, seeing itself as a defender of the global order. If the Japanese government were now to acquiesce to the U.S. hardline measures and only seek an exemption, it will lose credibility. A country that has consistently promoted itself as a defender of a free and open economic order risks undermining its credibility and disappointing its neighbors if it backs down under pressure from an ally and appears to prioritize only its own interests.
The latest reciprocal tariffs have significantly impacted Japan’s ASEAN neighbors. Many developing countries in Southeast Asia have been targeted by these tariffs, with particularly harsh measures imposed on Cambodia, Laos, and other nations with fragile economic infrastructure. These countries rely on exports to the U.S. market, and high tariffs will directly harm local employment and industry. Many have supported free trade across ASEAN, and the new U.S. measures are causing widespread anxiety and discontent. If Japan remains silent, its Asian neighbors will only feel even more isolated.
Japan and ASEAN should work together to protect the diverse, rules-based trade system. First, they should cooperate under the auspices of the WTO, presenting the case of U.S. tariffs as violations of international agreements. Even if the U.S. refuses to accept the WTO’s resolution, it would be significant for Japan, ASEAN countries, and other like-minded nations to stand united in upholding and defending the rule of law in the global trading system.
Second, they should work to strengthen the free trade framework within the region. When the U.S. withdrew from the Trans-Pacific Partnership (TPP) in 2017, Japan brought together the remaining participating countries to form the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The U.K. has since been accepted as a participating nation in the CPTPP as the free trade zone expands. The CPTPP is expanding, as are the Regional Comprehensive Economic Partnership (RCEP) led by ASEAN and other agreements, and this bolstering of regional free trade zones is important. Through these frameworks, the banner of free trade can continue to be flown regionally, even as some major powers shift toward protectionism.
Fortunately, a strong sense of trust remains in Japan, according to ASEAN opinion polls. In the recently published State of Southeast Asia: 2025 Survey Report by the ISEAS-Yusof Ishak Institute in Singapore, Japan was recognized as a key nation striving to “‘do the right thing’ in contributing to global peace, security, prosperity, and governance.” It behooves Japan to live up to this reputation. A nation cannot gain trust or leadership if it doesn’t speak out. The path Japan should pursue adheres closely to the principles of free trade that it has cultivated, rather than bowing to Washington’s argument. Direct criticism of an ally requires discretion, of course, but it is vital to articulate the importance of multinational systems to the U.S. through constructive dialogue and persistent diplomacy.
The inconsistency of trade rules across the global economy as it recovers from the pandemic is concerning. Working diligently to protect the free-trade system is an investment for Japan, fostering not only its own prosperity but also regional and global stability. If Japan can be proactive, it will have an opportunity to play an active role in establishing order in commerce and bolstering its regional credibility. In collaborating with ASEAN, Japan can counter the new wave of protectionism by reaffirming to the international community the importance of an open economic order grounded in the rule of law – and help put the brakes on a rising tide of protectionism.
SUKEGAWA Seiya is a professor at the Faculty of Political Science and Economics, Kokushikan University and a visiting professor at Thai-Nichi Institute of Technology.
