Evans Chamberlain Asset Management - Japan Avoids Higher US Tariffs on Cars
Evans Chamberlain Asset Management - Fresh trade negotiations mean Japanese cars will not be subject to increased US tariffs for the time being.
TAIPEI CITY, Taiwan, October 19, 2018 (Newswire.com) - Evans Chamberlain Asset Management analysts believe Japan could avoid the imposition of higher tariffs on its motor vehicle exports now that it has agreed to enter a fresh round of trade negotiations with the United States. However, Japan’s economy may not escape the fallout of the trade war between the US and other major economies.
US President Donald Trump had been threatening to impose tariffs of 25 percent on Japan’s motor vehicle exports but Evans Chamberlain Asset Management analysts say the US has agreed to hold off on these tariffs while trade negotiations are in progress.
Trump has long made it known that he is deeply dissatisfied with Japan’s trade surplus with the United States which currently stands at $69 billion. Nearly two thirds of this surplus can be attributed to Japanese cars. Trump is calling for a bilateral agreement to address the “problem” and reduce the deficit.
Evans Chamberlain Asset Management analysts believe the chances of the US imposing higher tariffs on Japanese autos have decreased significantly but are not ruling out an increase in the future. The US currently imposes tariffs of 2.5 percent on imported Japanese cars and 25 percent on trucks.
While Trump continues to insist that Japan reduce its trade surplus with the US, there is still a possibility that it will resort to restricting Japan’s motor vehicle exports by imposing higher tariffs.
Trump has cautioned that the US has a number of ways to damage China’s economy as the trade war between the world’s two largest economies rages on.
Evans Chamberlain Asset Management analysts believe Japan could be seriously impacted by the US’ trade battle with China.
Source: Evans Chamberlain Asset Management
Categories: Transportation and Logistics