US tariffs could push Japan's economy into recession

On March 27, Japanese Prime Minister Ishiba Shigeru announced that Tokyo will consider all options to deal with the US's decision to impose a 25% tax on imported cars.

According to data from Japan’s Ministry of Finance, automobiles will account for 28.3% of the country’s total exports to the US in 2024, the highest proportion of all items. (Source: Bloomberg)

Japan made the announcement after President Donald Trump announced a 25% tariff on imported cars and light trucks to the US, effective from April 2. Analysts said the move could deal a heavy blow to the Japanese economy because the country exports a large amount of cars to the US.

According to Prime Minister Ishiba Shigeru, Japan is a country with a large investment in the US, so it is unreasonable for Washington to apply a common tax rate to all countries. He emphasized that he will consider national interests and consider all options to come up with the most effective response.

According to data from Japan's Ministry of Finance, automobiles will account for 28.3% of the country's total exports to the US in 2024, the highest proportion of all items.

The auto industry contributes about 3% of Japan's GDP and has been a major driver of recent wage hikes, as automakers reap huge profits from overseas markets.

According to Takahide Kiuchi, senior economist at Nomura Research Institute (NRI), a 25% tariff on imported US cars could reduce Japan's GDP by about 0.2%. "President Trump's tariffs could push the Japanese economy into recession immediately," he said.

Source: https://baoquocte.vn/chuyen-gia-thue-quan-cu-a-my-co-the-day-kinh-te-nhat-ban-nhanh-vao-suy-thoai-309010.html