2 days ago
Trump remark on Japan tariff hike may be mere threat, Japanese economist says
A Japanese economist has said that signaling by US President Donald Trump of a tariff hike on Japan is probably just a threat reflecting dissatisfaction with an uncompromising trade partner.
Kiuchi Takahide, executive economist at Nomura Research Institute, spoke to NHK on Wednesday.
He said the United States preferentially held talks with Japan initially to conclude a deal with Tokyo as a leading example for trade negotiations with other countries.
Kiuchi added that Trump seems frustrated that Japan has conceded less than he expected in the talks so far.
The economist said Trump's remark that he would force Japan to pay higher tariffs is merely a threat at the moment because if tariffs are tightened, US import prices will rise, affecting the country's economy this summer.
He said if that happens, criticism of Trump's tariff policy within the US will increase, and financial markets could be thrown into confusion.
As for Japanese delegates' repeatedly visiting the US for the negotiations, Kiuchi said such action can emphasize Japan's desire to reach an agreement with the US but will not necessarily lead to a deal.
Kiuchi concluded that the US tariff policy will come to a standstill and the country may cut tariffs on its own in the next few months, so it would not benefit Japan to make concessions before that.
