What the US trade deal with Japan means for other Asian allies in Trump’s crosshairs

It “has been very clear that although allies deserve special considerations, they won’t get a free pass out of this”, said Alfredo Montufar-Helu, a senior China-based adviser to C-suites. “Not even key allies like the UK and Japan have been able to secure a complete reduction of tariffs, [and this] signals a fundamental shift in global trade dynamics, moving away from the pre-Trump 2.0 era.”

He said the shift was likely to result in a restructuring of trade relations and supply chains, as businesses aim to minimise costs and diversify risks.

“The US-Japan deal will put more pressure on other major Asia exporters to secure a better deal … Before August 1, there should be more deals struck with Asian exporters,” Kang Min-joo, a senior economist for South Korea and Japan at ING Economics, said in a note on Wednesday.