Trump is pushing ahead with his extremely aggressive trade attacks. He is indiscriminate: he attacks rival China, which has an economy of the same size as the US, but also long standing allies Japan, South-Korea and Germany. It is obvious that what Trump can gain are mostly short term small wins, insignificant in real, long term economy. But that's enough for a celebrity who wants to get rich quick and then be out of the game. That this policy ruins trust between allies, undermines the international trade treaty system and institutions is of no concern to him.
How he treats Japan is also a good example of his arrogance and neglect for long term goals. The US has a policy of being present militarily in all regions which it perceives as important to its defense. Since its coastline is open to the Pacific, East-Asia is such a region. That is why it was important to the US to stop Japan from becoming a large power during WWII (not out of humanitarian concern for the Chinese or anyone else).
The US used the defeat of Japan to keep it under control. This is even so today. Its stationing a large part of its Asian military force in Japan. Every time Japan is doing well or would gain any advantage over the US in terms of technology or trade the US is using the 'we defend you' card, meaning: our military is in your country, and if you don't cooperate 1 we won't defend you, even though we have restricted your military development for 70+ years, and 2 we can attack you easily.
This has already happened, most notably during the 'trade wars' of the 1980s. This period saw large troubles in the US economy. Rather than addressing the microeconomic issues at home, US politicians bashed Japan and other trading partners with made-up claims of unfairness, etc., and used their military and political weight to force these countries to open their markets to US products. This happened for example with Microsoft, Intel and other companies. They entered Japan, and with heavy state backing killed off the local rivals. Meanwhile the US only opened its market to Japanese products partly and typically avoided purchasing the products of Japanese companies if possible (this is what happened to Fuji, Hitachi and other tech companies in the late 1980s/early 1990s). All these, to put it mildly, unfair actions were justified by aggressive, sometimes downright hateful propaganda by US politicians and corporate lobbyists.
The US is now doing the same. Trump is not a genius who is shaking up the US economy. He is just an opportunist who is using old tricks to gain short term advantages. His threat to increase tariffs on Japanese cars by 25% could cause huge losses for Japan, which is a much smaller economy dependent on exports. It is also an ally of the US, hosting its military bases, and often supporting the US's interests.
What Trump doesn't seem to grasp is that many Japanese voters, many foreigners, and many Japanese politicians are fed up with the current situation. If he keeps pushing policies in this direction Japan will lose its incentives to cooperate with the US in the future. If it aligns itself more with China or carves out a more independent position that would be a huge diplomatic, political, credibility and economic loss for the US. It could of course retaliate financially, but the many competitors of the US who would be happy about this could offset much of the losses of Japan, and a political-military realignment could lead the country to a much more independent or at least less directly threatened position.
A realignment for Japan might be the good idea then. If the US is not only an unreliable business partner, but it also cannot be trusted to keep its and its partners' long term defense interests in mind, then why stay close to it? China is closer, its economy is already in some measures larger than the US and a market of 1.4 billion buyers will have more potential as it develops than a 330 million market. Militarily, if the US is pursuing such an opportunist, short term strategy as it is doing under Trump, its presence in East-Asia can be reasonably doubted.
The Chinese government is already putting enormous pressure on Taiwan politically and militarily, while integrating with investment and joint ventures as much of its economy as possible. The US supports Taiwan on paper and sells its weapons, however it doesn't recognise the country formally. It is, as in many cases, not making a clear commitment and is balancing between two interests.
The Chinese leadership would of course love nothing more than having Japan on its side. This is after all how things were for most of the history: the two countries existed relatively peacefully, trading and exchanging diplomatic missions since 500AD. We might be headed back to those times. Trump is just hastening the dawn of US influence in the region by undermining his country's credibility.
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