Japan is thinking about imposing tariffs on $409 million worth of U.S. exports. This comes as a response to the aluminum and steel import taxes that Trump’s administration imposed on them.
What Can We Expect?
This move would mean that Tokyo is ready to resist the U.S. duties. A move like this would also increase the crack in major economies that Donald Trump’s trade policies make. It threatens to slow business activity and global trade overall.
As a reminder, Japan is the only of U.S. allied countries that didn’t receive any exemptions from the President’s tax decision.
Convincing Washington to include Japan to an “exempted countries” list have failed over the past months. That might change, though, according to analysts.
The taxes that Tokyo is considering would be equal to the taxes that Washington imposed in the first place, said public broadcaster NHK on Thursday.
According to NHK, the government is expected to reveal the plan to the World Trade Organization this week, which is a necessary procedure.
Analysts also think that this threat is a negotiating tactic to improve the chances of being included in the exemption list. The tactic comes a big change from Tokyo’s usual quiet tone.
Global Trade War?
Yoshihide Suga is Japan’s government spokesman. He tated that their government is thinking of taking the necessary steps based on World Trade Organization rules. But he also said that they haven’t made the final decision about their retaliatory steps.
In March, President Trump decided to impose import taxes of 10% on aluminum and 25% on steel. This move drew criticism from all over the world. Many accuse Trump of increasing the risk of a trade war globally.
China also increased taxes by up to 25% of the 128 products that comes from the United States.
Questions from the American People:
Trump is a businessman. Is he looking at these tariffs from a business perspective or a state perspective? Is there a difference?
Will taxes on imports help the American economy more than taxes on exports will hurt us?
How will these tariffs affect American and Japanese relations?