The Japanese government has expressed dismay at US President Donald Trump’s announcement that all vehicles imported into the US will be subject to a 25% tariff from April 23. Prime Minister Shigeru Ishiba has called on Washington to exempt Japanese car makers from the levy, which would come on top of the 2.5% existing duty. If Tokyo is unable to convince Trump to reduce his demands, car manufacturers and the broader Japanese economy could feel the pain. “The overall impact on business here in Japan will be serious,” said Martin Schulz, chief policy economist for Fujitsu’s Global Market Intelligence Unit. “Almost one-third of Japan’s exports are autos or in related sectors and, put together, the industry accounts for 8% of overall employment here,” he told DW, adding that the tariffs are poised to shrink the Japanese economy by 0.2%. Schulz believes that trade negotiations will not be very successful because they often bring together a range of different tariffs and proposals that must be balanced on both sides. At present, Japanese auto firms account for around 16% of the vehicles imported into the US, ahead of the 15% from South Korean manufacturers, with analysts suggesting that the tariffs will impose an additional cost on Japan’s big six car firms amounting to some $11.4 billion.

Source: https://www.dw.com/en/japan-winces-as-trump-threatens-tariffs-on-auto-imports/a-72067997?maca=en-rss-en-all-1573-rdf