Japan’s measures to facilitate US tariffs

Japan will present US President Donald Trump a number of measures to make it easier for tariffs to be relieved, said Prime Minister Shigeru Ishiba a few hours before a possible phone call between the two men on Monday.

« We believe that we have to present a package of measures and we cannot present it in a fragmentation, » said Ishiba in front of the parliamentarians.

Trump announced tariffs from 24 percent last week to goods from Japan, although the country is the largest source for foreign direct investments in the United States.

On Monday, the chairman of the Japanese company association Keidanren also explained that the world was on a crossroads. « Thanks to the free trade system, the world has been blossomed since the end of the Second World War. The driving force behind this system is the United States, » Masakazu Tokura recalled at a press conference.

« The United States itself increased the tariffs, and in response to protectionist movements have arisen because countries had to form a counterweight to these movements, » he added.

On Monday, the Tokyo Stock Exchange collapsed by almost eight percent, in harmony with the global markets that were panicked due to the economic effects of Trump’s trade war. In addition to the 24 percent tax on Japanese imports that come into force this week, Donald Trump also introduced a 25 percent tax on cars that are introduced in the USA.

Japan is particularly susceptible: Last year, 28 percent of Japanese exports to the USA was worth around $ 40 billion to the automotive sector.

EU Minister of Trade Advice in Luxembourg

Meanwhile, the EU advises on its measures. The European countries Ireland, Slovakia, Germany, Hungary, Italy and Austria are most affected by the increase in US tariffs, according to the rating agency Moody’s in a rating published on Monday. This assessment is based on the proportion that exports to the USA make up in the economy of the respective country.

« The effects of the new tariffs », which US President Donald Trump announced on Wednesday, « will vary significantly depending on the sector, » warns the agency. In the EU, the sectors are likely to be the most strain on machines and alcoholic beverages, as more than a fifth of the exports of these products go to the USA, « analyzes them.

« The EU’s reaction will determine the overall impact on the economies, » says Moody’s, depending on whether it imposes further tariffs or not. The EU tries to negotiate with the United States about reducing these tariffs, but is also preparing for a counter reaction.