Japan's economy faces major shocks after the United States imposed its "reciprocal tariffs" policy, according to a Japanese expert.
The U.S. has imposed a 25 percent tariff on imported cars and introduced an additional 24 percent reciprocal tariff on Japanese products starting Wednesday. These measures have raised concerns about potential systemic risks to the global economy.
In an interview with China Central Television Network (CCTV), Nobuhiko Hibara, an associate professor from Waseda University's business school, highlighted the severe impacts of the U.S. trade protectionist measures on Japan's key industries, including automobiles.
"Japan exports about 30 to 33 percent of its cars to the United States. So, that's the part which affected the most. If Japan's automobile exports to the U.S. decrease by around 500,000 vehicles, Japan's nominal GDP is projected to contract by approximately 0.3 percent. The impact is enormous. Of course, prices will go up. Consumption will also shrink," he said.
While the United States claims to address the hollowing out of American manufacturing, it is essentially a form of trade protectionism, noted the expert.
"Even if the so-called U.S. trade deficit is reduced by the imposition of tariffs, but if the trade volume itself decreases, even reducing the trade deficit will not help. So, countries are very worried right now about the risk of an overall global economic contraction," he said.
Japan's economy faces multiple shocks from US tariffs: expert
Japan's economy faces multiple shocks from US tariffs: expert
