Analysis: Trump boosts pressure on Japan to strike dealーNHK WORLD-JAPAN NEWS
Daisy, what stands out to you about this letter? Well, Trump has threatened a similar tar before, but 25% is still massive. And it’s and it’s worth repeating that Japan, South Korea, US allies. Michael Bman used to be a trade offer in the first Trump administration. NHK asked him for his take on the letter. Well, I mean, no doubt it’s a shock to many people in Japan and to um some people in the United States. It certainly feels and looks pretty aggressive, especially considering the tone of the letter, the the number, the percentage in the letter, and the um you know, the fact that Japan, you know, is being lumped into the same category as many other countries in a very similar fashion with maybe a different number, but very similar sort of um threats and um and and um you know, treatment. I think Trump is trying to put pressure on the two countries to reach an agreement. He has frequently expressed dissatisfaction over the trade defeat with Japan and we see it again in this in the letter. In his words, this defeat is a major threat to our economy and indeed our national security. He’s been calling on the country to import more US cars and rice. Japan has been facing intense pressure since this April. That’s when the Trump administration unilaterally announced a 24% tariff against the country. It’s worth pointing out that Japan has already been hit hard by an additional 25% tariff on its key automobile industry that’s been in effect since April. Japan trying to ease that tariff and fat Trump calls reciprocal tariffs together through fat quarter package agreement that makes it hard for the country to make concessions as it’s trying to protect the auto industry that also makes negotiations difficult. Right. Well, if the uh 25% tariff does actually go into effect next month, what impact will that have on Japan’s economy? There are still lots of variables to figure out, so it’s hard to say, but there are some big numbers involved. Japan’s overall export to the US exceeded 21 trillion yen last year. That’s the 143 billion. It’s Japan largest export market. I already mentioned the the old rebby, but Washington has also already slapped Tokyo with tariffs on steel and aluminum of 50%. will be looking at a consable negative effect on Japan’s GDP that in turn would have a serious impact on the economy as a whole. But we are of course still weeks away from that potential reality. So what is next for Japan’s negotiators? The key thing for them is figuring out some kind of win-win situation, something that both sides can agree on. And time is ticking. The former Trump administration trade official we heard from earlier says this extension is the last chance for the two countries to find a compromise and a shar deal. Negotiations will be difficult going forward but Japan will need to remain resilient. Trump director says that if Japan opens what he calls its closed trading markets and removes barriers, Washington may consider adjustments. So I think he’s signaling an opportunity in order to break the impress. I think Japan needs to present a bold proposal. So I think that’s going to be hard to figure out under such pressure.
The US president warns he’ll hit Japan with a 25 percent tariff on exports to his country beginning next month if a bilateral trade deal isn’t reached. NHK World Senior Business Correspondent Esaki Daisuke explains what’s at stake and what Tokyo needs to do next. #business #donaldtrump #trumptariffs #usa #analysis #politics #trade
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