Japan-US Trade Relations has imposed new import tariffs on many countries. This would make it more expensive and more fragile for the United States to import goods into the US.
What impact did this have on Japan?
Japan is a big exporter β which means it ships a lot of goods (like buses, electronics) to the US.
When the Japan-US Trade Relations raised tariffs, UK goods became more expensive than Japan’s, and their deals became less.
Bank of Japan statement
Central Bank of Japan (BOJ) Governor Kazuo Ueda said that, Nevertheless, if the Japan-US Trade Relations imposes similar tariffs, it would lead to a slowdown in global trade.
This could also affect Japan’s frugality and austerity.
Who will be impacted?
Companies like Toyota, Sony, Panasonic etc. may face losses. Share Request Investors may sell Japanese stocks because of the showdown. If there is a decline in foreign investment, the currency may be affected.
Japan-US Trade Relations Import-Export Power Game
America wants more products made in America to be sold and the price of foreign products to be reduced so that
- boost your frugality
- jobs will remain in his country
Thus, by assessing tariffs it has made foreign competition more valuable. But it’s risky to ignore a supporter like Japan
Japan is not only an exporter, it is also a strategic ally of America (to balance China). Still, EU, ASEAN, if Japan leaves US’s request and moves towards India.”America’s trade” ally will weaken.
Japan-US Trade Relation may worsen.
- And in a worst-case scenario, Japan may actually move closer to China.
- Reality is a concession β Japan and the US sit down and make a deal
- For example, tariffs are waived on specific areas (buses, technology).
- Yes, balance is maintained by estimating the ratio (duty free up to x lakh buses etc)
Behind-the-scenes maneuvering continues β the US shows it is tough, but does not completely cut off provocateurs.
