Vishwamitra Research Foundation

As Trump recalibrates relationships with key allies from QUAD, does the group still hold value?

The Quadrilateral Security Dialogue, comprising the United States, Japan, Australia, and India, has emerged as a cornerstone of Indo-Pacific security architecture designed to counterbalance China’s growing regional influence. However, recent developments suggest that the Quad may be experiencing unprecedented internal strains that could undermine its effectiveness and cohesion. President Trump’s decision to impose substantial tariffs on Japan, including tariffs between 25% and 40% on imports from 14 countries, including Japan, alongside growing pressure for explicit positions on Taiwan, has created tensions that go to the heart of the alliance’s sustainability. These developments raise fundamental questions about whether the Quad can maintain its strategic focus while member nations pursue divergent economic policies and navigate complex domestic political pressures.

The trade dimension of current Quad tensions represents a particularly acute challenge for the partnership’s coherence. Despite negotiating a subsequent trade agreement that established 15% reciprocal tariffs on Japanese goods exported to the United States, the initial threat of much higher tariffs sent shockwaves through the Japanese political establishment. Japan sees President Trump’s tariffs as a ‘national crisis’ given the country’s export-dependent economy and its reliance on the US market. This economic pressure creates a fundamental contradiction within the Quad framework: how can partners effectively coordinate security policies while simultaneously engaging in trade conflicts that undermine mutual trust and economic interdependence?

Japan’s position within the Quad has become particularly precarious due to its dual role as both a crucial security partner and a target of American economic nationalism. The country’s $68 billion trade surplus with the United States has made it a target for Trump’s trade policies, despite its strategic importance in containing Chinese influence in the region. This creates a dynamic where Japan must balance its security cooperation with the United States against the economic costs imposed by American trade policies, potentially forcing difficult choices between economic interests and strategic alignment.

The broader implications of these trade tensions extend beyond bilateral US-Japan relations to affect the entire Quad framework. India, as a fellow Quad member, observes these developments with concern, recognizing that if the United States is willing to impose significant economic costs on Japan despite their security partnership, similar pressures could be applied to India in the future. This creates uncertainty about the reliability of American partnerships and whether strategic cooperation provides sufficient protection against economic coercion.

Australia’s position within this dynamic is particularly interesting, as it has thus far avoided the worst of Trump’s trade policies while maintaining its security commitments within the Quad framework. However, Australia’s experience demonstrates the challenges of maintaining strategic partnerships with the United States while preserving economic relationships with China, a balance that becomes increasingly difficult as great power competition intensifies. The Australian model of managing these competing pressures may provide insights for other Quad members, but it also highlights the complexity of maintaining coherent alliance policies across multiple domains.

The Taiwan question represents another significant source of potential tension within the Quad, as member nations have varying levels of commitment to explicit support for Taiwan’s security. While all Quad members share concerns about Chinese assertiveness in the Taiwan Strait, they differ significantly in their willingness to make explicit commitments to Taiwan’s defense or to take positions that might provoke Chinese retaliation. The United States, under the Trump administration, has taken increasingly explicit positions supporting Taiwan, while other Quad members have been more cautious about their public positions.

India’s approach to the Taiwan question reflects the complexity of managing multiple strategic relationships while maintaining strategic autonomy. While India shares concerns about Chinese behavior in the Indo-Pacific, its own border disputes with China and its traditional approach of avoiding explicit positions on what it considers internal affairs of other countries create constraints on how far India can go in supporting explicit pro-Taiwan positions. This difference in approach could become a source of tension within the Quad if the United States demands more explicit alignment on Taiwan-related issues.

The institutional resilience of the Quad has been demonstrated through continued cooperation despite these tensions. The 10th Quad Foreign Ministers’ Meeting held in Washington, D.C., on July 1, 2025, suggests that the partnership continues to function at the working level despite higher-level political tensions. Similarly, the launch of a Quad-at-Sea Ship Observer Mission in 2025 indicates that practical security cooperation continues to advance even as political relationships face strain.

However, the sustainability of this approach depends on whether the Quad can develop mechanisms for managing divergent national interests while maintaining strategic coherence. The partnership’s emphasis on freedom, rule of law, democratic values, sovereignty, and territorial integrity provides a foundation for cooperation, but these principles must be operationalized in ways that accommodate different national approaches to specific policy challenges.

The economic dimensions of Quad cooperation have become increasingly important as member nations seek to reduce dependence on Chinese supply chains and develop alternative economic partnerships. Initiatives in areas such as vaccines, infrastructure, climate change, and technology represent attempts to create positive-sum cooperation that can offset the tensions created by trade disputes. The success of these initiatives may determine whether the Quad can evolve into a comprehensive partnership that encompasses both security and economic cooperation.

The role of domestic politics in each Quad member nation also affects the partnership’s stability and effectiveness. In the United States, the Trump administration’s focus on trade deficits and economic nationalism creates tensions with security partnerships that were developed primarily around strategic considerations. In Japan, the economic costs of American trade policies create domestic political pressures that could affect support for security cooperation. In India, the government’s emphasis on strategic autonomy and non-alignment traditions creates constraints on how far the country can go in explicit alliance relationships.

The China factor remains the primary unifying element within the Quad, as all member nations share concerns about Chinese assertiveness and the need to maintain a balance of power in the Indo-Pacific region. However, the specific nature of each country’s concerns about China differs, and these differences could become more pronounced if economic pressures force difficult choices between strategic cooperation and economic interests. China’s responses to Quad activities, including economic pressure on member nations, could exacerbate these tensions and test the partnership’s resilience.

The path forward for the Quad will likely require developing more sophisticated mechanisms for managing the tensions between security cooperation and economic nationalism. This might involve creating clearer separations between economic and security issues, or developing more integrated approaches that recognize the interconnections between economic and security concerns. The partnership’s ability to adapt to these challenges while maintaining its core mission of balancing Chinese influence will determine its long-term effectiveness and relevance.

Recent developments also highlight the importance of institutional flexibility within the Quad framework. The partnership’s informal structure, which allows for cooperation without binding commitments, may provide advantages in managing tensions and accommodating different national approaches to specific issues. However, this flexibility also limits the depth of cooperation that can be achieved and may reduce the partnership’s effectiveness in addressing more complex challenges that require sustained, coordinated responses.

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