TRUMP Didn’t See This Coming: Japan & Canada Sign a Deal, Begin Gas Trade: Japan Betraying the US?

TRUMP Didn’t See This Coming: Japan & Canada Sign a Deal, Begin Gas Trade: Japan Betraying the US?

Since President Trump’s re-election in November 2024, Washington has taken many URSTW allies by surprise with a series of steep import duties. Canada was among the first to feel the impact within the new administration’s opening weeks. Ottawa saw tariffs imposed on steel, aluminum, and a range of other goods, fundamentally altering the trade landscape that had prevailed since the early 2010s. Japan, which had long been spared such measures, suddenly found itself subject to American levies when a broad package of duties came into effect on April 2nd. In the months that followed, both Ottawa and Tokyo dispatched trade ministers, technical experts, and industry representatives to Washington in an attempt to roll back the tariffs or at least secure carveouts for key sectors, automotive parts, semiconductors, agricultural commodities, and renewable energy components. But despite intensive high-level talks, nothing has yet yielded a formal agreement and the duties remain in place as of July 2025. Against this fraught commercial backdrop, today Japan’s Foreign Minister Iwaya Teeshi and Canada’s Foreign Minister Anita Anand met at the Ministry of Foreign Affairs in Tokyo and signed a landmark security pact. Their 90-minute session began with private consultations on regional security dynamics where both ministers noted the growing unpredictability of great power competition and concluded with the formal signing of the agreement between the government of Japan and the government of Canada on the security of information. A joint press announcement followed in which both ministers underscored that although bilateral trade relations with the United States remain subject to unresolved tariffs, the two Pacific powers are determined to deepen defense and security cooperation with each other to safeguard a rules-based international order. Following the meeting, Canada’s foreign minister posted on X, stating, “Canada and Japan are close partners, united by strong economic, defense, and people-to-people ties. I met with foreign minister Iwaya to advance our shared vision for a free and open Indo-Pacific, and we signed a landmark security of information agreement, an important step to deepen our defense and security cooperation. The newly minted agreement lays out a comprehensive legally binding regime for the reciprocal protection, marking, storage, and handling of classified defense and security information exchanged between the Canadian Armed Forces and the Japan Self-Defense Forces. It builds directly on the Japan Canada action plan for contributing to a free and open Indo-Pacific region launched in October 2022 which had already envisaged preparatory work on an information security framework. During the dinner that capped the evening’s events, Minister Anan noted that this pact will enable more seamless collaboration on joint exercises, cyber defense operations, and United Nations peacekeeping missions, even as each country contends with external economic pressures, and will allow both capitals to coordinate more closely on crisis response planning in Southeast Asia and beyond. Both ministers also used the occasion to reaffirm their commitment to advancing two further bilateral treaties, an agreement on the transfer of defense equipment and technology, which aims to streamline co-production and joint procurement projects, and a mutual legal assistance treaty to facilitate cooperation on transnational crime and cyber security investigations. With Canada holding the G7 presidency in 2025, Ottawa emphasized that such legal instruments will underpin not only trilateral and multilateral initiatives in the Indo-acific, but also broader efforts to shore up democratic institutions worldwide. As the security pact enters into force, Japan and Canada have signaled that they will continue to pursue diplomatic and technical channels in Washington with the same determination that brought them together in Tokyo, seeking eventually to ease the tariffs that have reshaped their economies even as they deepen their strategic partnership in an uncertain global environment. Interestingly, this meeting coincides with another significant milestone in Canada’s energy export journey, its first LNG shipment, which has just arrived in Japan. In a landmark moment for Canadian energy exports, the country has successfully delivered its first liqufied natural gas LNG cargo to Japan, signaling a significant deepening of trade ties between the two Pacific nations. This inaugural shipment dispatched from the newly operational LNG Canada terminal in Kitamat, British Columbia marks the beginning of Canada’s role as a direct LNG supplier to Asia and reflects its broader ambition to become a global energy player. The cargo was carried aboard the Puteri Sajin Jang, a vessel with a capacity of 174,000 cub meters and was facilitated by Malaysia’s state energy firm Petronis, which holds a 25% equity stake in the KDMAT facility. This development comes as part of Canada’s strategic shift away from reliance on US- ccentric natural gas markets as it positions itself to meet the rising energy demands of Asia, particularly Japan. Japanese firms such as Mitsubishi Corporation and Toho Gas have secured long-term LNG supply agreements through the LNG Canada joint venture, which also includes Shell, ProChina, and Korea Gas. These partnerships underscore Japan’s commitment to diversifying its energy sources and reducing dependence on more distant or geopolitically complex suppliers. What makes this project particularly attractive to Japanese buyers is not only its geographic advantage, offering significantly shorter shipping times via the Pacific compared to routes from the US Gulf Coast, but also its environmental credentials. The Kitamat facility operates using hydroelectric power from BC Hydro and incorporates advanced emissions control technologies that reduce greenhouse gas intensity by approximately 35% compared to top tier global facilities and 60% compared to the industry average. These factors align closely with Japan’s goals of maintaining energy security while progressing toward its decarbonization targets. Complnting this commercial breakthrough is the broader energy collaboration between Canada and Japan. Earlier this year, a memorandum of understanding was signed between Canadian energy and indigenous groups and Japan’s Institute of Energy Economics, IEJ, reinforcing shared goals around LNG, hydrogen development, and the responsible sourcing of critical minerals. These cooperative efforts are further supported by political initiatives such as Alberta’s trade missions to Tokyo, which emphasize the province’s LNG capacity and broader clean energy agenda. As Canada’s LNG Canada project ramps up production, the country is set to increase its initial export capacity of 14 million tons perom with discussions already underway to double that volume in a second phase of expansion. For Japan, which may see its LG demand rise by 2040 due to a slower than expected roll out of renewable energy, this secure and efficient supply chain from Canada provides a timely solution. With this first LNG shipment successfully delivered, Canada and Japan have not only marked a new chapter in their energy relationship, but also laid the foundation for long-term cooperation in the global transition to cleaner, more secure energy systems. Trade between Canada and Japan has grown in significance with bilateral merchandise exchange reaching approximately 15 billion in exports from Canada to Japan in 2024. While imports into Canada from Japan totaled about $121 billion, resulting in a net trade deficit for Canada in their exchange. Canada ranks among Japan’s key partners under the comprehensive and progressive agreement for Trans-Pacific Partnership, benefiting from reduced tariffs, especially on agriculture, forestry, metals, and other priority sectors. Over the course of 2025, monthly trade data reflects steady activity. In April 2025, Canada exported goods worth 1.38 billion to Japan, marking a modest increase of 2.16% compared to April 2024. Overall merchandise exports and imports for Canada in May 2025 stood at $60.8 billion and 66.7 billion respectively. While not Japan specific figures, they illustrate broader export and import dynamics amid tightening global trade conditions. Canadian exports to Japan span a range of commodities including mineral fuels, notably coal and liqufied propane gas, copper, iron ores, nickel, canola seed, wheat, pork, beef, and soybeans along with forestry and pharmaceutical products. In contrast, imports from Japan are dominated by vehicles, machinery, equipment, and precision instruments particularly for medical use. The Canada Japan trade relationship is bolstered by high level trade missions and government efforts to strengthen economic ties. Canada’s participation in CPTP ratified in December 2018 further solidifies its access to Japan’s market and promotes rules-based trade cooperation. Trade promotion initiatives such as Canadian-led missions to Tokyo, advance bilateral engagement across energy, clean technology, and critical mineral sectors. Despite the trade deficit, the overall trade volume and growing engagement underscored deepening economic integration. Japan remains one of Canada’s top merchandise trading partners, consistently ranking among the top five, and the resilience and diversification of this relationship continue to support jobs, investment, and market access in both nations. That’s all for this video. Thank you for watching. As an independent channel, we don’t have corporate backing. We rely on your support to keep going. If you found this video valuable, please give it a thumbs up and leave a comment below. It really helps more people find our work. Thank you so much for being part of our community. 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