U.S. tariffs on Japanese imports will reduce Japan's GDP by 0.5 percent, as the protectionist policies are likely to cause global stagnation and raise recession risks, a Japanese economist said Thursday.
The United States started to impose 15 percent tariffs on Japanese cars and other goods on August 1.
Hitoshi Tsunetomo, executive managing director of the Shizuoka Economic Research Institute (SERI), told China Central Television (CCTV) that the effects of the tariffs will become evident this autumn.
"Mainstream views suggest that U.S. tariff policies will reduce Japan's GDP by approximately 0.5 percent. While the impact has not yet materialized, I believe these effects will gradually become visible in the economic data starting this autumn," he said.
Tsunetomo criticized U.S. tariff policies, stressing that they violate the core principles of the World Trade Organization (WTO). He warned that if other nations emulate U.S. protectionist practices, global economic fragmentation will worsen.
"U.S. actions clearly violate the fundamental principles of the WTO. At the core, this is protectionism, an extreme protectionist policy to shield domestic interests. If all countries worldwide follow this path, the global economy will be fragmented. In such a scenario, economic growth would not only stagnate but likely slide into recession, which is a deeply concerning outcome," he explained.
US tariffs to lower Japan's GDP by 0.5 pct: economist
US tariffs to lower Japan's GDP by 0.5 pct: economist
