Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
Investing.com -- Japan’s automotive sector, which represents 20% of the country’s total exports, could face a potential loss of $17 billion in U.S. exports. This comes in the wake of President Donald Trump’s decision to impose a flat 25% tariff on the automotive sector, according to the International Trade Centre ( ITC (NSE:ITC)).
The majority of Japan’s automotive exports are destined for the U.S. market. However, the new 25% tariff, which came into effect yesterday, could significantly impact this trade flow. Julia Spies, ITC chief of trade and market intelligence, disclosed these potential losses to reporters in Geneva.
She stated, "Japan’s automotive sector comprises 20% of the country’s total exports and the majority of exports are headed to the U.S. market. Now the flat 25% tariff on the sector that came into force yesterday means that Japan could lose 17 billion in export potentials in the US, according to our calculations."
The new tariff introduced by the U.S. is expected to reshape the dynamics of the global automotive industry, particularly affecting Japan, which relies heavily on its automotive exports to the U.S. for its economic health. The ITC’s calculations underscore the potential impact this could have on Japan’s export economy.
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