The U.S. government's 25-percent tariffs on imported vehicles, which are set to come into force on Wednesday, tend to dampen the economic outlook of Japan, one of the world's largest auto producers, and the global free trade, according to a Japanese economist.
On March 26, U.S. President Donald Trump announced plans to impose 25 percent auto tariffs -- on top of previous duties -- on April 2, widening the global trade war he kicked off upon returning to the White House in January.
In a video interview with China Central Television (CCTV) ahead of the tariffs taking effect, Kazuma Maeda, an economist of Tokyo-based Dai-ichi Life Research Institute, said car manufacturers and the broader Japanese economy could feel the pain.
"If the tariffs are imposed, imported cars' prices will rise in the U.S., which will undoubtedly put downward pressure on new car sales. If new car sales in the U.S. are weak, the output of cars which Japan specially makes for the U.S. market will naturally decline, which will become a downward factor for Japan's GDP. The vehicle industry's production cuts will have a significant, or even more serious, impact on related sectors. Therefore, the impact of production cuts on the automobile industry may double or become even more severe," he said.
Maeda warned that the U.S.' auto tariffs will not only affect certain countries and regions, but will damage global free trade in the long run.
"In the medium and long term, if the Trump administration continues to increase tariffs, the free trade system will have to undergo major changes. The free trade system is mainly based on the principle that a commodity is to be produced in the place with the lowest cost, thus providing consumers with convenience. In the medium and long term, the prices of goods around the world could rise compared to the past, which is worrisome," he said.
US auto tariffs to hurt Japan's economy, global free trade: economist
US auto tariffs to hurt Japan's economy, global free trade: economist
China's commitment to its path of opening up will continue as a long-term national strategy and should increasingly be defined by inclusiveness, a national political advisor said Friday.
Zhou Hanmin, a member of the Standing Committee of the National Committee of the 14th Chinese People's Political Consultative Conference (CPPCC) and president of the Shanghai Public Diplomacy Association, made the remarks in an interview with China Media Group (CMG) during the annual political "two sessions" underway in Beijing.
"Opening-up is and has been a long-term national policy and a strategy ever since China opened itself up (to the world) some 48 years ago. Ever since China joined WTO (World Trade Organization), you could see it has fundamentally changed the formats of economic movements. So opening-up is a reference and also a driving force," he said.
Zhou stressed China must also invite less privileged nations to share in the prosperity of a more open world.
"Inclusiveness is one word that should be used to modify China's opening-up. I (previously) submitted a bill in CPPCC for the zero tariff for those least developed nations' exportation to China. Because for each and every China International Import Expo, you can see quite a large number of exhibitors coming from the least developed countries. We need to give them very genuine help. We are just in the situation of that. We just try to do not only with developed nations, but the Global South and rest of the countries, all together," he said.
Zhou's comments come amid the ongoing "two sessions", the annual meetings of China's top legislature, the National People's Congress (NPC), and the top political advisory body, the National Committee of the CPPCC. Both bodies serve a five-year term and hold a plenary session each year, generally in March.
The fourth session of the 14th NPC and the fourth session of the 14th National Committee of the CPPCC kicked off in Beijing on Thursday and Wednesday, respectively. A main focus is the adoption of the country's 15th Five-Year Plan (2026-2030), a key blueprint guiding China's drive toward modernization. When asked about key signals from the plan that the international community should closely watch, Zhou outlined several key issues.
"We are now carrying on this Five-Year Plan in the most crucial period of time. We are going to generally modernize the country (in) another 10 years. In this five-year period of time, we need to focus more on creation. Creation not necessarily in the field of technology. Creation means the modernization of the governance, create lots of new things in the system and methods of governance. This is also important," Zhou said.
"The modernization of industrial systems, the further expansion of the ability of consumption, and we try to know very well the longevity, whatever solves people's daily needs. The last but not least, we try to understand fully international collaboration. Opening-up is still a driving force," he said.
China's opening-up should continue path of inclusiveness: political advisor
China's opening-up should continue path of inclusiveness: political advisor
