Egypt posts record EGP629b primary surplus in 2024/25    EGP swings vs. USD in early Sunday trade    EGX launches 1st phone app    Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Japan is on Trump's next trade salvo agenda
Published in Amwal Al Ghad on 08 - 09 - 2018

The threat of auto tariffs is back on the agenda, and Japan could be U.S. President Donald Trump's new “number one target.”
In a recent conversation with the Wall Street Journal, Trump described his good relations with the Japanese leadership but then added: “Of course that will end as soon as I tell them how much they have to pay.”
“The president likes to pick trade fights,” said Derek Scissors, Asia economist at the American Enterprise Institute, a conservative public policy think-tank based in Washington D.C. He added that, if a new NAFTA deal is signed with Canada and Mexico, then those countries would be exempted from the ongoing American auto investigation. Given that the European Union has already won an exemption on such tariffs, that would make Japan — a key U.S. ally in Asia — “the number one target.”
“There's a U.S. investigation into auto imports on the grounds of national security, which is a little strange. But, if you take Mexico, Canada and the EU out of it, Japan is the obvious target of that investigation into autos,” he told CNBC's “The Rundown.”
Although Trump may have been referring to other costs he could hit Japan with, Scissors said autos is the most likely course of action: “We have an investigation open on Japanese cars and other cars, but we haven't taken any action along those lines.”
The Trump administration launched a national security investigation into car and truck imports in May, under Section 232 of the Trade Expansion Act. The United States is threatening to push tariffs of up to 25 percent on imported cars and parts, on top of a 25 percent tariff on steel and 10 percent on aluminum already announced.
The U.S. administration is still deciding whether to impose the measures as part of its efforts to protect American automakers and drive down the trade deficit.
Counting the cost
Japan's trade imbalance is the third largest of all major U.S. trading partners, just behind China and Mexico, according to the census bureau. The $54 billion trade deficit in automobiles and parts accounts for three-quarters of that overall figure.
“A trade deficit can be cause by unfair practices, but in the Japanese case, we haven't seen the Trump administration say what's wrong with what Japan is doing — so I think it's a bad claim on the president's part,” Scissors said.
The American tariff threat is also tool for leverage over Japan — which is under pressure from the White House to form a bilateral trade agreement. Tokyo is opposed to an exclusively American deal and has voiced its preference for a more diverse multilateral agreement.
“The question is whether the president is threatening autos and other issues in order to make a bargain, or to cause an extended conflict,” Scissors said.
“I think, in the Japanese case, he wants an offer from Japan.”
Hardest hit
Higher tariffs could be particularly painful for Asian automakers including Toyota, Nissan, and Honda, which count the United States as a major market. The tariffs could also hurt the Japanese economy: Automobile exports are a key plank of the country's exports.
However, analysts at geopolitical intelligence firm Stratfor said Japan could be insulated to some extent from U.S. trade action because of the many Japanese production facilities in the United States.
U.S. and Japanese officials will continue to hold talks ahead of an anticipated meeting between Trump and Japanese Prime Minister Shinzo Abe on the sidelines of the U.N. General Assembly at the end of September.
Source: CNBC


Clic here to read the story from its source.