The impact on trading partners

Nikkei Asia reports that Japan’s exports have fallen for a fourth straight month, while the Wall Street Journal writes of the Trump administration’s plans for Japan’s pledged investment fund. Per Bloomberg, Korea-US trade talks remain in deadlock. Reuters reports on Mexico’s plans to impose tariffs on China, finding BYD and Tesla have the most to lose. Yuri Onno of CSIS describes Mexico’s auto imports quota scheme and its lesson for the US. Per the Financial Times, the US will kick off its USMCA review process this week, and iconic British brand Fortnum & Mason is suffering under Trump’s trade policies.

Mentioned publications

Japan exports fall for 4th straight month on Trump tariff pain – Grace Li, Nikkei Asia, September 17, 2025
Nikkei Asia writes that Japan’s exports have declined for a fourth consecutive month, largely because of reduced exports to the US – its largest export market – due to increased tariffs imposed by the Trump administration.
Trump’s Team Explores Government-Backed Manufacturing Boost – Brian Schwartz and Gavin Bade, The Wall Street Journal, September 18, 2025
The Wall Street Journal reports on Trump administration plans to use Japan’s pledged $550 billion investment fund, agreed as part of the US-Japan deal to avoid high “reciprocal” tariffs, to fund an American manufacturing renaissance.
Korea-US Trade Talks Remain in Deadlock After Raid Fuels Tension – Heesu Lee, Bloomberg, September 21, 2025
Per Bloomberg, Korea and the US continue to negotiate an agreement to fix tariffs on Korea at 15% and clarify the terms of Korea’s $350 billion investment pledge in the aftermath of a dramatic recent immigration raid on a Hyundai factory.
BYD and Tesla set to lose most from Mexico's proposed tariffs on China – Emily Green, Reuters, September 13, 2025
Reuters finds that the impact of Mexico’s proposed 50% tariff on auto imports from China is likely to fall most heavily on BYD and Tesla, while legacy US automakers will escape the effects of the tariffs because they have production facilities in Mexico.
What the United States Can Learn from the Mexican Auto Import Scheme – Yuri Onno, Center for Strategic and International Studies, September 8, 2025
Onno describes Mexico’s quota system to incentivize automotive production in Mexico, and how increased domestic investment and production is tied to increases in quota allocations for foreign auto companies to import products that it cannot make in Mexico.
HF sponsored access US begins review of trade deal with Canada and MexicoFinancial Times, September 17, 2025
The FT reports on the Trump administration’s initiation of the USMCA review process, starting with a formal call for comments from interested parties in the US.
HF sponsored access Fortnum & Mason tea sales suffer as Trump’s trade war hits ‘King’s grocer’ – Josh Spero and Laura Onita, Financial Times, September 17, 2025
The FT writes that Fortnum & Mason’s products now run afoul of both de minimis rule changes and rules of origin determinations in exporting to the US, suddenly facing high tariffs when previously their exports were duty free.