By John Q. Hosedrinker 
During a G7 meeting, the United States proposed imposing increased tariffs on China and India due to their continued purchases of Russian oil. Japan’s Finance Minister Katsunobu Kato expressed that Japan would not support this action due to its commitment to WTO guidelines. Japan imports a small amount of oil from Russia and considers the Sakhalin-2 project a key LNG supplier, which is not subject to sanctions. G7 representatives are currently formulating a new sanctions package, aiming to finalize it within the next two weeks.
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Japan Refuses to Raise Tariffs on China and India Over Russian Oil Trade
The refusal of Japan to raise tariffs on China and India in response to their continued trade with Russia regarding oil is a significant development, and frankly, not surprising. It appears the US is struggling to maintain its influence on the global stage, with nations seemingly choosing to pursue their own economic and geopolitical interests, regardless of the US’s desires. The US’s request for these tariffs is seemingly falling on deaf ears.
The US approach feels like it’s losing out on soft power. Just look at Japan’s recent, massive investment in bullet train infrastructure for India – a cool $70 billion. This isn’t just a business deal; it’s a strategic move. Japan is investing in its own interests and fostering a relationship with India, a country that could act as a counterbalance to China’s growing influence. This approach shows Japan’s commitment to its own strategic goals rather than simply following US demands.
The unpredictability of US leadership is a key factor in this dynamic. With shifting stances and inconsistent policy, the US seems to be losing the trust of its allies. It is not unreasonable for Japan to hesitate before committing to a move that could be reversed or undermined by a future shift in US policy. This inconsistency makes it hard for countries like Japan to take risks by backing the US.
The current global landscape seems to be one where countries are prioritizing their own national interests, economic partnerships, and regional stability. The US request for tariffs on China and India appears to be at odds with these priorities, potentially jeopardizing important trade relationships and strategic alliances. The fact that the US seems to be asking for this and has been inconsistent is also a factor.
The US’s economic leverage also plays a role in this situation. While the US possesses considerable economic power, it’s not as absolute as it once was. The world has seen the US utilize economic power and the decline of its soft power as well. Now, the central bank system, and the reliance on the US dollar, is a crucial factor. But many countries, like China, are starting to diversify their holdings and reduce their reliance on US debt. If the US is no longer a trusted partner, countries will simply seek alternatives.
Japan, as a close ally of the US, recognizes the importance of maintaining a strong relationship with India and China. In this scenario, it makes complete sense for Japan to prioritize these relationships over an unneeded tariff hike. It’s about fostering a stable regional environment and protecting its economic interests. And the move serves a much deeper purpose, to keep China in check.
This is the result of the US losing the trust of their allies. Japan isn’t alone. Even countries like South Korea have had their faith in the US rattled. The US, with its unpredictable leadership, is isolating itself. The economic impact of tariffs, and the political fallout that could follow from disrupting trade with China and India, far outweighs the benefit of following the US’s lead in this situation. It’s a no-brainer. The US is, in some ways, becoming the target of its own undoing.