Economic uncertainty looms as Japan heads to the polls

Economic uncertainty looms as Japan heads to the polls

At the heart of Hiroshima’s commercial life, Mazda stands out not just as a car maker, but as a bedrock on which the city’s prosperity depends. But that foundation stone is suddenly looking shaky. The automaker faces a 25% tariff on cars sold to its biggest export market, the United States. A move that has sent shock waves across the city. This local company, Nanja Auto Interior, founded 110 years ago, produces door panels for Mazda and relies on it for over 90% of its sales. The one thing we need to focus on going forward is whether or not we can turn a profit with reduced production volumes. Of course, Mazda will try not to reduce volume, but it’s inevitable that it’s going to fall. Nearly 1,000 workers depend on Nanjo for their livelihood. But like thousands of other companies in Japan’s vast outer supply chain, its fate is now tangled in global politics. Despite Japan’s close ties with Washington, Prime Minister Ishiba has failed to secure a reproof on tariffs. With the election looming and public confidence fallen, pressure on the government is mounting. I get the feeling that they’re being pushed around a lot. I’d like it if both sides said, “Let’s do this as quickly as possible.” And took some actions so it doesn’t keep going round and round like this. Mazda is scrambling to shield itself. The company says it’s cutting more than 650 million US in costs by slashing over time and reviewing business travel. With over 68,000 companies tied to Japan’s out sector and nearly 6 million people employed across the supply chain, the stakes have never been higher. Ruma Char, TRT World. I wish.

Japanese voters are struggling with growing economic uncertainty. From rising inflation to deepening trade tensions, the country’s financial future is in flux, and experts say those concerns could shape the election’s outcome. Rumeysa Codar has more.

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