Burton Mills - Trump Challenges Abe on Trade
Burton Mills - Trump launches auto import investigation that could mean harsh tariffs for Japanese motor vehicle imports.
TAIPEI, Taiwan, September 12, 2018 (Newswire.com) - In spite of a close and amicable personal relationship between US President Donald Trump and Japanese Prime Minister Shinzo Abe, Burton Mills analysts say that Trump is giving Abe a hard time on trade. In recent months, Trump has imposed tariffs on steel, threatened hefty car import duties and placed Japan under significant pressure to deliver a favorable bilateral economic deal.
Trump has also ditched a climate change agreement supported by Tokyo, pulled out of the multilateral Trans-Pacific Partnership (TPP) endorsed by Prime Minister Abe as a counterbalance to China and is going ahead with negotiations with North Korean dictator Kim Jong Un, against strong warnings from Abe.
Since Trump came to power, he and Abe have met almost 10 times. They have shared meals and played golf together. They recently agreed to meet before a US/North Korea summit.
Burton Mills analysts say that although Abe has cultivated close personal ties with the US President, this relationship has not stopped Trump from clashing with Japan over various trade-related issues. A similar stance was taken against France even though French President Emmanuel Macron had also developed an amicable relationship with Trump.
Burton Mills analysts say that last week, Trump made a decision to launch an investigation into auto imports. This probe could result in tariffs similar to those Trump has already imposed on imported metals. These tariffs would be particularly damaging to Japan with automobile imports making up almost a third of their exported goods to the US.
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Source: Burton Mills