Business leaders laud Japan-US trade deal, admit ongoing challenges
"The persistent negotiations paid off," Yoshinobu Tsutsui, chairman of the Japanese Business Federation, the country's most powerful business lobby also known as Keidanren, told reporters, adding his group has "high regard" for the outcome.
The tariffs under the deal, which was first announced by U.S. President Donald Trump on Tuesday, are lower than initially proposed. They were agreed before an Aug. 1 deadline set by the United States to impose a "reciprocal" 25 percent tariff on Japanese goods.
"I have yet to look into the details, but would like to provide support (from Keidanren) on multiple fronts," Tsutsui said.
While some companies have expressed hope that the potential adverse effects of the levies would be eased, others said challenges were likely to persist as they nevertheless remained high.
"The evasion of even higher tariffs across the board may act as a crucial breakwater for companies," said Takeshi Niinami, chairman of the Japan Association of Corporate Executives.
"We must work toward rebuilding a free-trade system," he added, also warning of the spread of the "America First" approach.
While saying the deal helped remove U.S. tariff uncertainties, Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, called the 15 percent tariffs "regrettable."
"The effects of this new burden of tariffs will hit not just exporter firms, but also those that shoulder the domestic supply chain and are largely made up of small and medium-sized firms that are responsible for supplying parts and logistics," he said in a statement.
The Trump administration's 25 percent additional auto tariff was one of the biggest sticking points in the trade talks. Combined with the 2.5 percent rate already in place, a total tariff of 27.5 percent was imposed on imported passenger vehicles in April.
Following the latest announcement, a source from a major automaker expressed dismay at the deal, noting tariffs prior to Trump's inauguration had stood at just 2.5 percent.
Meanwhile, a source from an electronics manufacturer noted that "compared with the 25 percent tariff that was slated to hit on Aug. 1, 15 percent is slightly better."
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