Japan is the world’s fourth largest economy, meaning it accounts for a large part of global trade and growth. <\/p>\n
Tokyo imports a great deal of energy and food from overseas and is dependent on exports including electronics, machinery and motor vehicles. <\/p>\n
The US is its biggest export market.<\/p>\n
Some experts had warned that Trump’s tariffs could knock as much as a percentage point off Japan’s economy, pushing it into recession.<\/p>\n
With lower tariffs, exporters will be able to do business in the US more cheaply than if Trump had stuck to an earlier threat to levy higher taxes.<\/p>\n
And the deal brings certainty, which allows businesses to plan.<\/p>\n
The announcement also strengthened the Japanese yen against the US dollar, giving manufacturers more purchasing power to buy the raw materials they need to expand their businesses.<\/p>\n
The US agreement is particularly good for Japan’s auto giants like Toyota, Honda and Nissan. Previously, American importers had to pay a 27.5% levy when they shipped in Japanese cars. <\/p>\n
That is now being reduced to 15%, potentially making Japanese cars cheaper compared to the likes of rival China.<\/p>\n
Having said that, US automakers have signalled they are unhappy with the deal. <\/p>\n
They are concerned they have to pay a 25% tariff on imports from their plants and suppliers in Canada and Mexico compared with Japan’s 15% rate.<\/p>\n","protected":false},"excerpt":{"rendered":"Japan is the world’s fourth largest economy, meaning it accounts for a large part of global trade and…\n","protected":false},"author":2,"featured_media":17976,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-17975","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/17975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=17975"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/17975\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/17976"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=17975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=17975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=17975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}