Trump GOES NUTS as Japan QUITS US Auto Market of Trump’s Tariffs – $60B US Disappear
In a political era marked by volatile rhetoric, economic nationalism, and a longing to revive a past industrial golden age, the Trump administration launched an aggressive protectionist agenda aimed not at adversaries, but at one of its oldest and most dependable allies, Japan. The move shocked global trade observers and introduced a sense of unpredictability into an already delicate economic balance. When the Trump administration abruptly announced a sweeping new set of tariffs on April 2nd, only to postpone them by 90 days mere hours later, the chaos sent a clear message. There was no coherent strategy. Within that whirlwind of uncertainty, one deeply troubling threat remained intact. A looming 25% tariff on Japanese automobiles. For Japan, whose automakers are tightly integrated with the US market, the consequences could be catastrophic. Negotiator Rios Akazawa candidly acknowledged that the logic behind the threat was dangerously simplistic and misleading. President Trump during a Fox News interview offered a narrative that painted Japan as a predatory trade partner, flooding the American market with vehicles while supposedly offering nothing in return. But this rhetoric ignored reality. Japanese automakers have long ceased to be foreign intruders in the US automotive landscape. Today, they are pillars of American manufacturing, investing over $60 billion into US-based production and employment. Companies like Toyota, Honda, and Nissan collectively produce around $3.3 million vehicles annually on US soil. Toyota alone manufactured 1.25 million vehicles in 2023, followed by Honda with 970,000 and Nissan with 770,000. Together, Japanese car makers now hold about 40% of the US market share for passenger and light commercial vehicles. Ignoring this vital symbiosis while obsessing over an 8.6 trillion yen trade deficit of, which 82% stems from autos is not just misleading, it’s economically dishonest. The so-called negotiations turned into farce. While Akazawa traveled globally in search of meaningful dialogue, Trump casually waved threats like a dictator issuing edicts. I can send a letter to Japan. you’ll have to pay a 25% tariff on your cars, Trump declared, reducing international diplomacy to playground bullying. Such antics dismissed not only the foundational principle of negotiation, but also the devastating ripple effects this policy could have. The administration wrongly assumed that tariffs would hurt only imported vehicles, failing to grasp how integrated supply chains truly are. Even US assembled vehicles by Toyota and Honda heavily rely on imported components from Japan, especially engines, transmissions, and wiring systems. A 25% tariff on these parts would raise production costs dramatically, undermining American plants and threatening thousands of local jobs. Ultimately, it is the American consumer who would bear the brunt of this protectionist spectacle. If enacted, the tariff would spike the cost of hybrid and small SUVs vehicle categories dominated by Japanese brands by over $4,000. That’s not a minor inconvenience. It’s a hidden tax targeting the US middle class. In a fragile economic environment, such a price shock would likely suppress demand, forcing many consumers to delay new purchases or resort to older, less efficient vehicles. This not only undermines household finances, but also sabotages national goals for reducing emissions. Meanwhile, American manufacturers, especially those focusing on electric vehicles, would struggle to fill the void, resulting in a marketplace defined by higher prices, fewer choices, and diminished competitiveness. In essence, what was portrayed as a patriotic move would end up being a self-inflicted wound. While tensions with Japan simmered, another victory was being loudly declared by Trump’s camp. Canada, facing immense pressure, dropped its plan to impose a 3% digital services tax on tech giants like Google, Amazon, Meta, and Netflix. Initially designed to force these massively profitable companies to pay their fair share in taxes, especially as they continue reaping billions from Canadian consumers while contributing little in return, the tax was widely seen as a bold but necessary corrective measure. But under Trump’s retaliatory threats, Canada backed off. With trade negotiations frozen and pressure mounting, Prime Minister Mark Carney’s office announced on June 30th the cancellation of the proposed tax, hoping to salvage talks and reach a broader agreement by July 21. Saint D2 Trump’s media allies. This was a show of strength. He made Canada back down. They chanted. But beneath the celebration lies a harsher truth. This was not a win for the American working class or US small businesses. It was a gift to big tech. The very corporations who have mastered the art of tax avoidance. According to the Fair Tax Foundation, the Silicon 6, Amazon, Meta, Apple, Microsoft, Google, and Netflix rad in $2.5 trillion in profits over the past decade. Yet their average tax rate was just 18.8%. 8% far below the US corporate tax rate of nearly 30% and even under the global average of 25%. In other words, these tech behemoths avoided paying between $150 to $250 billion in taxes that could have funded hospitals, schools, infrastructure, and broadband for rural communities. Canada’s now shelved digital tax was expected to bring in $7.20 billion CAD, but with Trump pressuring them to abandon it, that revenue evaporated. American taxpayers will now continue to shoulder the infrastructure and regulatory burden that tech giants exploit to make their billions. Small businesses, meanwhile, remain trapped in an unfair marketplace where they must pay full taxes while competing against entities that hide profits offshore. Silicon Valley may have one, but it came at the cost of policy, integrity, and economic justice. The question now is, will Canada stay intimidated forever? The answer might surprise you. If a different administration, say Biden’s, or any future president less hostile to digital taxation comes to power, Canada could swiftly reintroduce the tax. In fact, the delay might simply be strategic. Canada could align with the European Union, forming a united digital tax front to avoid being singled out for US retaliation. If that happens, the very move Trump once celebrated as a victory could transform into a global coalition against American corporate impunity. And when the tide turns, big tech won’t be able to dodge taxes with ease. The real burden of cleaning up this diplomatic mess will again fall on everyday Americans. Trump’s cavalier attitude wasn’t limited to tariffs or digital taxes. When asked if he would consider extending the July 9th tariff deadline, he casually told Fox News’s Maria Bartramo, “I don’t think I’ll need to.” The phrase tossed off like a royal decree captured the essence of Trump’s America First policy, a cocktail of arrogance, unpredictability, and disregard for traditional alliances. That very attitude drove Canada to pivot away from the United States, initiating a strategic shift with profound long-term consequences, the Trans Mountain expansion project, TMX. Once a contentious infrastructure project quickly evolved into a national priority for Canada, with US leadership viewed as increasingly unreliable, TMX became a geopolitical lifeline designed to transport Canadian oil from Alberta to the Pacific coast, opening a gateway to Asian markets. In May 2024, the expanded pipeline began operations, tripling capacity to 890,000 barrels per day, on par with the canceled Keystone 40 project. And who was the first to seize this opportunity? None other than China. Dot. Reports from Reuters and the Institute for Energy Research confirmed that China had become the top buyer of crude oil flowing through TMX, displacing the US as Canada’s primary market. In just months, China ramped up its oil imports to 207,000 barrels per day, helping push Canada’s non- US oil exports up by nearly 60%, reaching an all-time high of 183,000 barrels per day in 2024. What began as a defensive maneuver became a strategic coup for Beijing without firing a shot or making a diplomatic overture. China secured energy flows from a G7 country directly adjacent to the US boral. Thanks to Trump’s erratic leadership, this development undercut Trump’s long-held claim of making America energy independent. In truth, the US remains heavily reliant on Canadian oil, especially in the Midwest, where refineries are optimized for heavy crude from Alberta. Sine’s energy’s CEO was blunt. US refineries can’t easily switch to other crude types. So, while Trump drove Canada into China’s arms, the US still depends on the very supply chain it pushed away. This is not winning its geopolitical self-harm. Yet Trump’s economic brinkmanship didn’t stop there. By mid 2025, tensions with China escalated to a dangerous new level. The US imposed a flurry of tariffs 10% in February, another 10% in March, a sudden jump to 34%, and now a threat of an additional 50%. Altogether, tariffs on Chinese goods reached an unfathomable 104%. For consumers, this translated into sharp price hikes. A $20 toy now costs $40. an iPhone doubles in price and cars could become $6,000 $12,000 more expensive. Trump insisted this was necessary to punish Beijing. But as China retaliated, the blowback was immediate and brutal. China responded not only with matching tariffs, but with a strategic chokeold curbing exports of rare earth elements. These metals like neodymium and dprosium are vital to electric vehicle batteries, semiconductors, military radars, and more. As the world’s dominant supplier, China’s decision to require strict licensing effectively acted as an export ban. The consequences were immediate. Asian stock markets nose dived. Hong Kong’s Hang Sang plummeted over 13%. Shanghai lost $500 billion in value overnight and Wall Street followed suit with a 10 to 15% drop. Investors scrambled for safe havens like gold. One economist likened the scenario to shock therapy that kills the patient. The two global superpowers had entered an economic death spiral with no end in sight. Each escalation risked collapsing the global trade system. And for what purpose was it to encourage domestic production, to fund national debt, or simply to gain psychological leverage? As the trade abyss widened, the rest of the world stood nervously on edge, hoping not to be pulled into the void. Dot. And so, while Trump continues to boast of strength, the consequences of his strategy ripple through the global economy. Alliances fray, markets falter, and adversaries quietly gain ground. The cost of this bravado isn’t measured in tweets or rallies. It’s measured in lost trust, lost trade, and lost time. And in the end, it’s not China or Canada who pays the price. It’s the American worker, the consumer, and the taxpayer who shoulders the weight of a misguided vision.
In a stunning turn of events, Japan has decided to pull out of the U.S. auto market, triggering a political and economic firestorm. This decision follows escalating tensions sparked by former President Donald Trump’s aggressive tariff policies, which have now backfired in the most dramatic way.
With $60 billion in automotive trade on the line, this move could reshape the global car industry and severely damage the American economy—costing thousands of jobs, shrinking dealership networks, and pushing car prices even higher.
In this video, we break down:
Why Japan made this shocking decision
How Trump’s trade war tactics pushed a key ally to the brink
The long-term consequences for U.S. consumers and automakers
What this means for China, Europe, and the future of global trade
This isn’t just about cars. It’s about economic warfare, foreign policy failures, and the unraveling of decades-old trade alliances.
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