The global economy has been jolted by a new round of Trump tariffs. The U.S. has proposed a flat 10% import tariff, along with an additional "reciprocal tariff" pegged to bilateral trade imbalances. For Japan, this would result in an effective cumulative tariff of 34%. While implementation of the reciprocal tariff has been delayed for 90 days, the underlying tensions remain unresolved.

Japan now finds itself in a critical window of negotiation. Washington may push Tokyo to increase agricultural imports or influence currency policy to strengthen the yen. But a more strategic and mutually beneficial path lies in the energy sector—a domain where U.S. and Japanese interests align naturally.

Rather than viewing these tariffs as a threat, Japan should treat them as a wake-up call to reassess its energy and industrial policy. The country’s current “Green Transformation” (GX) initiative aims to achieve net-zero carbon emissions by 2050, heavily investing in solar and wind energy, as well as electric vehicles.

However, these sectors are overwhelmingly dominated by China. Over 90% of the world’s solar panels and more than half of its wind turbines are produced there. In effect, Japan’s green energy push is subsidizing Chinese industry—while reducing demand for fossil fuels, much of which could be supplied by the United States.