business

Nikkei tumbles as Trump's tariff plan fuels trade war fears

23 Comments
By Ayai Tomisawa

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23 Comments
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Might just find out who has the bigger pluck you? Apparently China's retaliating in the red states.Only 3 billion to start vs the U.S'. 60 bil in tariffs. Let the chips fall where they may.

0 ( +3 / -3 )

It has been said that Trump will start a war during his term in power. What most don't realize is that a trade war with China could be as devastating in financial terms as a conventional war and it could draw the entire world into a recession. Just look back in history and see what protectionism did to the world the last time around nearly 90 years ago. Ironically, it can be said that a real world war ended that world recession. George Santayana said it best, "those who do not learn from history are doomed to repeat it".

7 ( +9 / -2 )

@cracaphat: The $3 billion Chinese retaliation is retaliation for the metals tariffs (expected to hit about $3 billion in Chinese steel and aluminium exports), not the upcoming $60 billion tech tariffs that are not yet imposed by America. The Chinese retaliation to that will likely be very bad..

-1 ( +5 / -6 )

It would be difficult to elect a less qualified president, even if we tried.

9 ( +13 / -4 )

An interesting question. When mercantilistic exporting countries engage in currency manipulation, dumping and predatory pricing practices, its OK.

When the receiving country of such practices decides to retaliate / fight back against said practices, they become the villain.

How does that work?!

0 ( +4 / -4 )

Nikkei tumbles

A man looks at his mobile phone next to an electronic board showing Japan's Nikkei average outside a brokerage 

They are called brokerages because they make you broker, don't you know.

4 ( +5 / -1 )

Trump and Pence are retaliating against years of China taking advantage of USA.Dumping cheap,shoddy goods and electric items,TVs,smartfones etc,and sending US business bankrupt.Enough is enough!

Japan will take all soybeans and other foods not produced here.We expect for return Japan will be tariff excemption on steel products.Trump/Pence will do Japan a deal. They are Dealmakers. China will be the one to suffer in the “Trade War” and Japan,USA economies will keep powering on.

-8 ( +4 / -12 )

Bring it on

0 ( +3 / -3 )

Everyone will suffer, but the point is that China sells a lot more to the US than vice versa, so China will suffer more.

1 ( +2 / -1 )

Cracaphat Might just find out who has the bigger pluck

Doesn't China control 97% of the world's rare earth industry on which most hight tech industries rely on?

Then again, Trump is only interested in supporting dying sunset industries such as the fossil fuel industry, so will not recognise this as a problem.

1 ( +4 / -3 )

Trump is not very good at running things. In fact, he's horrible. He's reckless. He's panicky. 

How is Japan’s steel and aluminum a national security issue? All reactionary and impulsive. No direction, no vision. It's a total guessing game.

3 ( +4 / -1 )

East Asia is even worse.

-2 ( +0 / -2 )

It's a fickle gamble could go up, could down... But if you have that much money to invest probably don't care as its excessive money they really didn't know what to do with anyway.

-1 ( +0 / -1 )

B-b-b-b-b-b-but I thought Toshiko and others on another thread JUST said it won't affect Japan at all, and Japan can do without the US.

Ganbare Japan: "They are Dealmakers. China will be the one to suffer in the “Trade War” and Japan,USA economies will keep powering on."

First, Trump and Pence are chumps and racists, not dealmakers. Second, any harm to China through this will hurt Japan just as much or more, hence the entire article on the Nikkei dropping out of FEAR of a trade war -- it'll be a lot worse if one actually happens. And any deal Japan gets out of this, if they do, will mean Abe has to sell his soul. He'll have to open the auto-market even more and FORCE a certain number of sales of American automobiles, regardless of people not wanting them (I think Japanese cars are far better, though not built to last more than 8 years). It'll probably also mean opening the agricultural market, something most Japanese, and Abe has promised the farmers would never happen, don't want in order to preserve domestic protectionism.

But if you don't think this will hurt Japan, why did Abe and Suga and others start crying when they were exempted automatically, and talk about how much it'll hurt things here?

0 ( +3 / -3 )

We expect for return Japan will be tariff excemption on steel products.

How's that working out?

-1 ( +0 / -1 )

All the way up to Trump economic policy, all the way down to world stock market, seems natural and no surprise what he is still doing those days.

0 ( +1 / -1 )

Apparently China's retaliating in the red states.Only 3 billion to start vs the U.S'. 60 bil in tariffs. Let the chips fall where they may. yep they haven even imposed tariffs on Soy and agriculture products which is worth $40billion in US exports each year. Ill give you one guess which states grow these products and who the majority of these people support!? hint, it isnt President Hillary. China hasnt even begun to target American companies with factories in China yet. Remember when they did it too Japan a number of years ago, now times that by 10. Trump and his supporters are fools if he thinks China doesn't have an answer to his tariffs , this is going to hurt far more people than Trump thinks its going to help. China isnt the pushover it was 40yrs ago, its grown into a formidable dragon. I wouldnt let President moron run a lemonade stand.

1 ( +2 / -1 )

but the point is that China sells a lot more to the US than vice versa, so China will suffer more. but the biggest difference China can fire 5 million workers and it wouldn't even flinch, since its run by one party with no challenge to its rule, will clamp down hard on any dissidents. America could loose 5 million workers and who do you think theyre going to take it out on come next election!? IF it comes to the long game I wouldnt bet against the Chinese. theyll just keep squeezing the red states until Trump is gone. LOL

-2 ( +0 / -2 )

ifd66

Doesn’t China control 97% of the world’s rare earth industry

No longer. China once controlled the world’s rare earth market by cutting prices, forcing rare earth industries in other countries out of business. But the Chinese made a big mistake when they refused to sell rare earth to Japan. Japanese manufactures immediately shifted to other rare earth producers like Australia and even developed car engines that run without rare earth.

1 ( +1 / -0 )

 theyll just keep squeezing the red states until Trump is gone. LOL

I think Trump will be gone regardless. People who voted for him are are now voting against the candidates he supports.

I do agree however that Trump's base in the US agriculture industry will get affected first. There are even talks about a potential scrapping of Boeing's 20-year trillion dollar deal with China. That would hurt.

4 ( +4 / -0 )

This trade war is going to become more fierce and all indices in world financial markets are bound to fall appreciably in coming days.

4 ( +5 / -1 )

When the receiving country of such practices decides to retaliate / fight back against said practices, they become the villain. How does that work?!

The answer is corporate interests. If multinational corporations can rake in massive (but short-term) profits under such a lopsideded arrangement, including being blackmailed by Beijing, they will do their best to protect and sustain such an arrangement, including getting the politicians back home on their side.

See the Wall St. Journal Article: "China started the trade war, not Trump."

-3 ( +1 / -4 )

China was/is supplying what Americans was/is demanding. Blame Walmart, Target, Best Buy etc...etc...or US companies should raise wages much higher so people can afford to buy things "made in America". People only buy things they can afford; which applies to Japanese as well.

-2 ( +0 / -2 )

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