Global Trade at Risk: Japan Expresses Concern Over US Tariffs
Tariffs on Major Trading Partners
TOKYO: Japan is "deeply concerned" about the possible repercussions on global trade of US President Donald Trump’s sweeping tariffs targeting major trading partners Canada, Mexico, and China, its finance minister said Sunday.
Tariff Details
Trump said Canadian and Mexican exports to the United States would face a 25 percent tariff starting Tuesday, while goods from China, which already face various rates of duties, would see an additional 10 percent tariff.
Impact on Supply Chains
The announcement threatens upheaval across supply chains, from energy to automobiles to food.
Japanese Finance Minister’s Statement
"We’re deeply concerned about how these tariffs could affect the world’s economy," Japanese Finance Minister Katsunobu Kato told a Sunday show on Fuji TV.
Assessing the Impact
F Fuji TV said Kato also stressed the need to "thoroughly assess" the possible effects of Trump’s tariffs policy on the foreign exchange market.
Japan’s Response
"Japan needs to scrutinise these policies and their effects, and take appropriate measures," Kato was quoted by Fuji TV as saying.
Background
Trump said the measures aimed to punish countries for failing to halt flows of illegal migrants and drugs including fentanyl into the United States.
Responses from Affected Countries
China, Canada, and Mexico have all vowed to respond to the tariffs.
China’s Response
Beijing’s commerce ministry said it would take "corresponding countermeasures" and file a claim against Washington at the World Trade Organization.
Mexico’s Response
Mexican President Claudia Sheinbaum said her country would impose retaliatory tariffs.
Canada’s Response
Canada’s Prime Minister Justin Trudeau said Ottawa would also hit back with 25 percent levies of its own on select US goods worth Can$155 billion (US$106.6 billion).
Conclusion
The tariffs imposed by the US on major trading partners have sent shockwaves across the globe, with Japan expressing deep concern over the potential impact on global trade. As the affected countries respond with retaliatory measures, the world waits with bated breath to see how this trade war will unfold.
FAQs
Q: What are the tariffs imposed by the US?
A: The US has imposed a 25 percent tariff on Canadian and Mexican exports, and an additional 10 percent tariff on Chinese goods.
Q: Why are the tariffs being imposed?
A: The tariffs are aimed at punishing countries for failing to halt flows of illegal migrants and drugs including fentanyl into the United States.
Q: How have affected countries responded?
A: China, Canada, and Mexico have all vowed to respond to the tariffs, with China filing a claim against Washington at the World Trade Organization, Mexico imposing retaliatory tariffs, and Canada hitting back with 25 percent levies on select US goods.
Q: What is Japan’s stance on the tariffs?
A: Japan is "deeply concerned" about the potential impact of the tariffs on global trade and is urging a thorough assessment of the effects on the foreign exchange market.