The auto industry in Japan suffers from a major revolution due to a 25 % tariff on vehicles and car parts imposed by the United States, and the move will strike large car manufacturers such as Toyota, Honda, Mazda and Sobaru with more than $ 19 billion in this fiscal year. Smaller companies, closely related to the supply of the series, are exposed to increasing pressure.
Small and medium -sized companies use about two -thirds of Japan, many of which are linked to the auto industry. These companies not only fight the customs tariff, but also move around the world towards electric cars.
Subaru expects a blow to 2.5 billion yen in the current fiscal year. ATSUSHI OSAKI Glimpse The company may transfer its production to the United States to escape from the increasing expenses. Such a procedure exposes local suppliers to weakness. Honda has already transferred the hybrid CIVIC production to Alabama and stopped the $ 11 billion supply chain plan in Canada.
Other auto companies are also caught, including Mazda, which stopped Canadian exports of Alabama and Nissan, which stopped US orders from Mexican SUV. Toyota is studying long -term expansion in the United States, but has not yet taken concrete steps.
A tariff that shakes confidence with the growth of recession fears
The timing can not be worse for policy makers in Japan, who have just started watching sustainable growth. The cycle of the so -called virtuous gains of wages, the strongest spending and moderate inflation was formed. This momentum is now in danger.
About two -thirds of the interviewed economists believe that the definitions may push Japan to recession. The basic inflation has ranked 2 % over the past three years, enabling the Bank of Japan to the comfort of its super -monetary policy. However, the retreat in a row in a row would qualify as a technical stood and threaten to disrupt the sensitive process of normalization faced by BOJ.
The monthly economic report issued by the government admitted the increasing risks. It has reported a decrease in the profits of companies related to commercial friction, and warned that constant pressure may slow investment and employment by the private sector.
The Bank of Japan, which has begun to tighten the high -level monetary policy, is now delivered in a new uncertainty. Over the past three years, basic inflation has overburdened 2 %, however the Central Bank meetings in April and may indicate the customs tariff 27 times. Politics makers cited threats to wage growth and the stability of the supply chain as barriers to reaching continuous inflation.
Continuous wage growth may make it difficult to help BOJ to keep the inflation goal by 2 %. Renewed slowdown would push the authorities to postpone or even circumvent the schedules, which stopped the Japanese economic normalization.
Japan pays the diplomatic road with the approach of the G-7 summit
The government of Prime Minister Shigro Ishiba is racing to contain the damage to the economy before the national elections. A sixth trip to North America was planned by commercial negotiator Riozi Akazawa in the hope of reducing the tariffs before the Group 7 summit on June 15, which Ishiba may attend and held a direct meeting with President Trump.
The Minister of Ministers in Japan, Yoshimasa Hishi, praised the results of the latest trade negotiations, the United States of China, saying that the stable relationship between the giants is necessary for Japan. Hayshi said at a press conference in Tokyo, “The stable relationship between China and the United States is very important with Japan and the international community.”
Comments followed a confirmation of the best commercial envoy in China, Lee Chengngang that a framework agreement was reached between Washington and Beijing after talks in London. The talks were based on a previous agreement in Geneva on May 12, which temporarily suspended most of the customs tariffs and was aimed at relaxing the steps that have been taken since April, when President Trump caused a mutual tariff for the main commercial partners.
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