Japan's economy faces multiple shocks from US tariffs: expert

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

A surge in global demand has set Yiwu's manufacturing and logistics chain running at full speed this spring, with factories and shippers all working overtime to meet orders bound for markets worldwide.

Many manufacturers in Yiwu, an eastern Chinese city known as "the world’s supermarket," reported a steady rise in orders in the first quarter of 2026.

Among them are sports goods makers racing to deliver ahead of the 2026 World Cup in North America.

"In the first two months alone, we sent about four containers of goods. Orders have gradually come in from South America and Africa, and the current orders can keep our production running through May," said Wu Xiaoming, general manager of a sports firm in Yiwu.

At Yiwu's bonded zone, customs brokers swiftly checked documents to ensure exports reach global markets fast.

"Today's shipments mainly are kitchenware, tableware and small home appliances. They are mainly bound for Germany and Spain," said Fu Jianying, a customs broker.

Yiwu has now linked 26 international rail freight routes, building a logistics network that covers more than 160 cities in about 50 countries. With smooth transport, creative design and strong manufacturing capacity, the city's cross-border trade is accelerating, underscoring its role as a hub of global small commodities.

Yiwu cross‑border trade gains speed this spring