President Donald Trump’s aggressive trade strategy, executed alongside Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, continues to reshape international economic relationships. Japan exemplifies this dynamic: after facing a 15% tariff—down from an initial 25%—Tokyo publicly expressed gratitude while committing to US$550 billion in US investments, with America retaining 90% of profits.

Japan has pledged to invest US$550 billion in the US economy under a sweeping trade deal unveiled July 22, 2025, aiming to avert steep auto tariffs. The pact expands US access to Japan’s markets across autos, agriculture, and defense while deepening bilateral ties in semiconductors, energy, and critical infrastructure, according to Nikkei, Reuters, and Yomiuri.

Tesla’s financial challenges deepened Wednesday with a sharp drop in second-quarter earnings and revenue, underscoring a tough year marked by falling sales, brand challenges, and growing competition.

Huawei’s Harmony Intelligent Mobility Alliance (HIMA) reached top five in total sales in June, just one spot behind Tesla China, an indication of the beginning of Huawei’s path to supremacy. Although Huawei insists it does not make cars, it understands the importance of controlling core vehicle technologies and is gradually making improvements in the automotive field. However, the elephant in the room must be addressed: Will Huawei grow to be a larger threat to its partners and other Chinese automakers?