A Japanese economist has warned that U.S. President Donald Trump's intended 25 percent tariff on automobile imports would significantly harm Japanese automakers and the broader economy.
The tariffs on automobile imports is the latest in a series of aggressive trade measures Trump announced recently as part of his so-called "America First" agenda.
In an interview with China Central Television (CCTV), Hideo Kumano, chief economist of the Economic Research Department at Dai-ichi Life Research Institute, highlighted that automobiles account for 28 percent of Japan's total exports to the U.S. If the 25 percent tariff is implemented, the overall impact on Japan will be severe.
"The cost of exporting [Japanese] cars to the U.S. will increase by 25 percent, which could lead to a sharp rise in the prices of Japanese cars sold in the U.S. This would worsen the performance of Japanese automakers and negatively impact related industries, such as steel, machinery, glass and chemical products. The ripple effects would spread across various sectors, and the overall impact on Japan's economy would be immeasurable," said Kumano.
Kumano also pointed out that raising tariffs on imported cars would exacerbate inflationary pressures in the U.S., increasing costs for American consumers and ultimately harming the U.S. economy.
"In reality, the tariffs would lead to price hikes, ultimately increasing expenses for American consumers. The burden would fall on the American public, and concerns about domestic inflation in the U.S. would also grow," said the economist.
U.S. tariffs on imported cars impact Japanese automakers and economy: economist
