Hello from Tokyo. The erratic tariff policies of U.S. President Donald Trump and his government have continued to shock the global economy since I took over the role of editor-in-chief at the beginning of the month. Amid the turmoil, Nikkei Asia has published a series of articles this week on the various measures being taken to counter the risks posed by Trump’s trade war.
Apple has started ramping up production of key products in India and Vietnam to take advantage of a 90-day grace period on U.S. tariffs. Honda Motor, meanwhile, is working on plans to relocate production of models to the U.S. from Mexico and Canada in response to an additional 25% tariff imposed by the Trump administration on all imported automobiles. Global companies face the massive headache of overhauling the complex supply chains they have spent years building to mitigate the risks posed by Trump’s policies.
And it’s not just multinational corporations being forced to rethink their strategies.
Starting this Monday, Chinese President Xi Jinping visited three ASEAN countries — Vietnam, Malaysia and Cambodia — calling for cooperation in response to the trade war with the U.S. Earlier this week, Japanese Prime Minister Shigeru Ishiba spoke on the phone with Singaporean Prime Minister Lawrence Wong, exchanging views on Washington’s tariff measures and Beijing’s retaliatory actions. A few days later, Japan sent a trade envoy to the White House for talks with Trump. Washington’s use of tariffs to pressure other governments appears to be prompting Asian leaders to explore new cooperative relationships.
Asian economies — and the governments behind them — are likely to be the hardest hit by the fallout from this massive trade war. As the global economy and geopolitical landscape reach a historic turning point, we will continue to report on the impact from an Asian perspective. I invite you to visit Nikkei Asia to explore our latest coverage.
My suggested reads
1. While global financial markets have been roiled by U.S. President Donald Trump’s tariff policies, the Philippine peso is bracing for a potential jolt as Trump’s promised immigration crackdown threatens to disrupt global labor markets and squeeze the country’s key economic lifeline: billions in remittances sent home by overseas Filipino workers.
2. Japan’s mighty auto industry has watched for years as Chinese rivals gained market share with cheaper, more electrified offerings. Now Japanese carmakers and suppliers are banding together to develop a standardized chip design that they hope will give them a competitive edge in the smart car age.
3. The U.S. “reciprocal” tariffs have prompted political leaders to push for greater intra-ASEAN trade. But this will prove easier said than done. Analysts say ASEAN’s weak internal trade stems from structural and institutional limitations, such as export-driven economies, wide income disparities and a reliance on similar intermediate goods or commodities.
4. In what is Vietnam’s most ambitious restructuring push in nearly 40 years, the government has decided to slash the number of provinces and cities from the current 63 to 34 by September. To Lam, general secret of the Communist Party and successor to Nguyen Phu Trong, who passed away last July, is driving unprecedented reforms to sustain the country’s economic growth.
5. The completion of China’s massive Three Gorges Dam in 2015 paved the way for large cruise ships to offer multiday river journeys on the mighty Yangtze, including passage through the gorges — still a major draw, even if their scenic wonder has faded somewhat. Writer John Krich shares his experience aboard the Yangzi Explorer as the luxury liner makes its way upstream from Yichang to Chongqing.
Through the lens
This week’s top photo pick: The Grand Ring, a symbol of Expo 2025 Osaka and one of the world’s largest wooden structures, is pictured on April 16. More than 140,000 people booked tickets to visit on opening day on April 13.
While the venue was bustling despite worries over sluggish momentum, issues also emerged for the “line-free expo” that the Japan Association for the 2025 World Exposition has aimed for. (Photo by Hiromasa Matsuura)
Check out more of our photo coverage here.
Wishing you a wonderful weekend!
Akito Tanaka
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