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Impact of US tariffs on Japan's exports, auto sector most affected
US Tariffs: Japan's economy suffered a setback when its exports declined for the second consecutive month. The biggest reason for this is the new tariffs imposed by the US. Which has a direct impact on Japan's manufacturing industry.
Japan's economy suffered a setback when its exports declined for the second consecutive month. The largest cause of this is the new US tariffs. This will directly affect Japan's manufacturing sector. This is likely to further strain Japan's struggling economy in the next few months. Particularly when the mood of the global trade war is intense.
Japan and the US did not agree on tariffs until July 9. As it was negotiating the removal of the already imposed 25 percent duty on the automobile industry. Japan's export-oriented economic paradigm is thought to be backed by the auto industry. Now, the US has threatened that if no trade agreement is reached by August 1, a 25 percent tariff will be levied on Japanese exports.
Koki Akimoto, an economist at the Daiwa Institute of Research, believes that as tariff rates are fixed and Japanese companies pass on their increased expenses to customers in the US, their competitiveness will decrease and their position in the market may weaken.
