Japan’s frustration rises as Trump shifts tariff deal terms, delaying $550B package.
India resists 50% tariffs, vows protection for farmers and small entrepreneurs.
China retaliates and diversifies, strengthening ASEAN trade and backing India.
Brazil, Australia, South Korea deepen alternative markets, rejecting Trump’s tariff demands.
US President Donald Trump’s tariff tantrums have irked not just India but several other countries across the globe. In countries like China, Europe and Brazil, governments are refusing to bow to Washington’s demands.
In addition to that, these countries are adopting countermeasures, turning to alternative trade partners, and cutting their reliance on the American market. Recently, Japan’s top trade negotiator, Ryosei Akazawa, cancelled a trip to Washington at the last minute, leading to a pause on talks regarding a massive $550 billion investment package that Tokyo had put on the table.
This package was designed to bring relief from the punishing tariffs imposed by US President Donald Trump, but Japan’s frustration has boiled over. According to officials in Tokyo, quoted by Reuters, the US side keeps shifting goalposts, while Trump insists that “our money to invest” will still deliver 90 percent of profits to the US. This has left to negotiations being stuck.
Japan’s Rising Frustration
The Japan-US standoff has captured the problem that several countries are currently facing due to Trump’s uncertain tariffs. Both the countries had mutually agreed to reduce tariffs on Japanese imports to 15 percent in exchange for the $550 billion investment package, back in July.
However, the details still remain vague and Japan is unhappy with Washington’s insistence on retaining a disproportionate share of profits. Additionally, Tokyo also wanted clear guarantees that tariffs on cars and auto parts will come down from 27.5 percent to 15 percent, but Trump delayed issuing a presidential order. Meanwhile, Japanese exports to the US have slumped sharply, with July recording the biggest monthly drop in four years.
India’s Firm Resistance
With India being hit hard by the 50% tariffs – the highest along with Brazil – the country has displayed some strong signs of firm resistance. Trump has openly accused India of profiteering by buying discounted Russian oil and exporting refined fuel to regions including Europe and that they would slash 25% of the duties if India stopped buying crude from Russia.
India has asserted that the country is ready to stand firm against US pressure, with Prime Minister Narendra Modi vowing he would "never compromise" the interests of the country's farmers.
On the other hand, US firms see India as a key consumer market, and thereby Trump’s tariffs risks alienating a country that Washington also needs as a strategic partner against China. However, the US President’s fixation on tariffs has led to a steady souring of economic ties.
Currently, the trade negotiations between the two countries remain stuck despite several rounds of discussions. India has reiterated its red lines as agricultural and dairy products remain protected sectors that cannot be compromised in any negotiation. Earlier this week, PM Modi said, “Be it the small entrepreneurs, farmers, or animal keepers of my country, for everyone, I promise you again and again, your interests are paramount for Modi. My government will never let any harm come to the small entrepreneurs, farmers, and animal keepers. No matter how much pressure comes, we will keep increasing our strength to withstand.”
How is China Retaliating and Diversifying
On Thursday, China stated that a top Chinese official will lead a delegation to Washington for trade talks this week, at a time when the two countries navigate a truce after months of friction.
Tensions between the world's two largest economies have significantly improved since April, when both countries slapped escalating tariffs on each other's exports. At one time, the tit-for-tat duties reached triple digits on both sides, thereby impacting supply chains as many importers had to halt shipments to try and wait for the governments to work things out.
Since then, U.S. and China reached an agreement to de-escalate tensions, temporarily lowering tariffs to 30 percent on the United States' side and 10 percent on China's part.
Additionally, the US-China truce has been an uneasy one, with Washington previously accusing Beijing of violating their agreement and slow-walking export license approvals for rare earths. China refused to bow down to Trump’s demands and has also backed India over the 50% duties imposed on it. Few days back, Chinese Ambassador to India, Xu Feihong called the US "a bully" and said that the country had long benefited from free trade but was now using tariffs for bargaining chips.
Instead of succumbing to US demands, China is portraying Trump’s tariff war as part of a broader strategy to contain its rise. That framing has helped Beijing rally domestic support and push ahead with policies aimed at reducing reliance on the US market.
More importantly, China has doubled down on diversifying its supply chains and has deepened trade with ASEAN.
Australia’s Strong Opposition
The US tariff measures has been strongly criticised by Australia as well, with Trade Minister Don Farrell confirming that Canberra has already raised the issue with Washington. Speaking to News18, Farrell said his government rejects the tariffs on both Australia and India, insisting that trade should remain free and fair.
“We believe in open and fair trade. We do not support tariffs on Australia or India. The 10% tariff on Australian goods is not the right approach. We have told the US this and will continue to push our case,” he added.
South Korea's Balancing Act
After meeting South Korean President Lee Jae Myung earlier this week, Trump insisted that South Korea will stick to the terms of its recent tariff agreement, including hundreds of billions of dollars of investment in the US. Even though, Seoul managed to lower Trump’s tariffs on South Korean goods from 25% to 15% in a July trade deal, the new administration has been compelled to take measures to support firms in managing the trade curbs and exploring new markets.
Brazil Remains Defiant
Besides India, Brazil also faces the highest tariff rate of 50 per cent. Trump first targeted Brazil through a letter in July that attacked that country’s leaders for their treatment of former President Jair Bolsonaro, an ally of Trump, who is facing charges for inciting a coup.
In addition to that, the country’s finance minister Fernando Haddad said on Wednesday that the country might challenge the steep tariffs in US courts. Brazil has also expressed "indignation" at the tariffs, stating that it has run persistent trade deficits with the United States, and has called the sanctions on Moraes an interference in Brazil's justice system.
In response to Trump’s tariffs, Brazilian exporters are deepening ties in Africa, Europe, the Middle East and Southeast Asia. Indian companies are fast-tracking approvals to sell more products abroad. Both governments are pushing new trade deals that sidestep Washington — a strategy Europe is also pursuing. These markets can’t fully replace the US, but they help avoid giving in to American pressure.
