Analysis of Japan-US trade agreementーNHK WORLD-JAPAN NEWS
And joining me to take a closer look at this deal is NHK World senior business correspondent Isaki. So Dais, is this a good deal for Japan? Well, the Japanese government’s assessment is that yes, it is. We heard Ishiba earlier paint a very positive picture. He says Japan has been able to negotiate the lowest tariff rate among countries with a US trade suppress. As we mentioned, Japanese imports will face a 15% rebate. For example, other other Asian countries, Indonesia and the prepiness both secured 19% tariff betams rate will be at 20%. Ishiba also said he believes this is a critical agreement for Japanese economic security. Take a listen. Japanese companies will invest in the United States across key sectors vital to economic security such as semiconductors, medicines, steel, ship building, critical minerals, aviation, energy, cars, and AI and quantum technology. We agreed that Japan and the United States will work closely together to build a robust supply chain that benefits both countries. We should mention that this Marxan about to face for Trump he had been pressuring Japan insisting there is no room for negotiation on the art and agriculture sectors. Japan’s willingness to give the US car makers and rice growers more access to its market helped to clear the way. But uh are there any potential downsides especially for Japan’s economy? Some economists suggest there could be. One Japanese economist says it could trim Japan’s GDP by 0.55% over the coming year. Nura Research Institute executive economist Q Takahites adds the economic impact could be granted. The Trump administration made a big compromise by lowering not just the reciprocal tariff but also the auto levy. We had estimated that Japan’s GDP will shrink by 0.85% if the tariffs were raised to 25%. However, the 15% auto levy will have some negative impact on the industry and the overall economy. Q also told us that business risks will remain high if the US continues to stick to an American first policy. Japanese companies may throw their investment pace in the US or focus elsewhere such as Europe. Another economist gave gave this deal high marks. I spoke with MSO security chief economist Kubai. He says Japanese automakers will have an ad will have an advantage in the US market over some non US rivals now that old tariffs are set to be lower. We still have to see how this all shakes out. Trump has a history of being unpredictable. Just because he says a deal has been made doesn’t mean that’s the end of the end of the story. Right. Thanks for your insight. NHK World’s senior business correspondent
Tokyo and Washington say they’ve clinched a deal just over a week before heavy US tariffs were set to kick in. NHK World’s Esaki Daisuke tells us what it could mean for Japan’s economy. #trumptariffs #business #analysis #trade #usa #japan #donaldtrump
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