EGN NEWS DESK
Incoming U.S. President Donald Trump might impose tariffs on Japanese vehicles exported to the United States, Stefan Angrick, a senior economist at Moody’s Analytics, mentioned in a latest interview.
Angrick warned that this poses an enormous threat to the Japanese economic system.
During his presidential marketing campaign, Trump vowed to impose blanket tariffs of 10% to twenty% on all imported items. Given the U.S. commerce deficit, he might focus consideration on Japanese auto exports.
Still, Angrick mentioned that such tariffs are unlikely to be realized as they may gas inflation within the United States. Noting that Japan is the world’s largest investor within the United States, he predicted that doable tariff hikes could be restricted if Japanese automakers promise to develop funding and shift manufacturing to the United States.
Meanwhile, the economist expressed concern a few resumption of the tit-for-tat tariff struggle between the United States and China, as officers within the new U.S. administration are anticipated to incorporate hardliners in opposition to China, including that it might inevitably hit the Japanese economic system.
If tariffs push up import costs and reignite inflation within the United States, the Federal Reserve could be pressured to maintain rates of interest excessive, Angrick identified. In that case, the Bank of Japan must speed up the tempo of fee hikes, he famous.
