business

Japan's trade surplus with U.S. shrinks further in October

22 Comments
By Kazuhiro NogiI

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© 2018 AFP

©2019 GPlusMedia Inc.

22 Comments
Login to comment

Should we call this, Trumpenomics?

2 ( +4 / -2 )

Do the hustleToday  12:14 pm JST

Should we call this, Trumpenomics?

Why yes, Do the Hustle, it is exactly that, and I am sure that our conservative posters here will hail this as a victory, as winning for the US because now its trade deficit is down. Yeah for the USA. Of course, this means fewer choices for them, and more expensive "American" products, but this is all about supporting the "home" team. Go USA. Lol.

2 ( +4 / -2 )

Of course, this means fewer choices for them, and more expensive "American" products, but this is all about supporting the "home" team.

That was Japan's economic model in the 60s and the S. Koreans' now. Indeed every major economic power of our time. It seems to work.

3 ( +3 / -0 )

Lo and behold; the deficit is falling, American products are beginning to fill the shelves, and the sky ain’t falling in. Ratchet up another victory for our Great Helmsman.

-2 ( +0 / -2 )

The deficit with its biggest trading partner China jumped 52.1 percent, logging the seventh consecutive monthly deficit.

Maybe Japan needs to follow America's example?

The fact is that for all the hype from China about opening up, they are still not an open economy, not even remotely so and they still to a MASSIVE extent support state economics which is entirely unfair on private industries that have to go cap in hand to the private market for capital. America is absolutely right about that.

And Japan is in no better position than America and should join with America and demand either that China really moves away from state economics or have all your state companies face massive tariffs and other impediments, like no foreign investment and joint ventures.

In fact, if the world wanted to change China's behavior one of the most effective ways would be to make it plain that they would deal with private Chinese entities but not state ones. That would force a recalculation in Beijing overnight and would have the other positive impact of bringing in a culture in which individual freedom is more prominent as capitalism and individual freedom can work hand in hand.

0 ( +1 / -1 )

American products are beginning to fill the shelves, and the sky ain’t falling in. Ratchet up another victory for our Great Helmsman.

hardly Japan is just buying more American oil gas & weapons instead of from the middle east, just taking from peter and giving to paul. Its not as if Japans total imports have suddenly surged. Basically reshuffling the deck to make it look like America has the better hand, end of the day American debt will continue to climb and it debt ceiling will continually be raised passing the costs onto Americas children and their children, nothing has changed.

0 ( +1 / -1 )

hardly Japan is just buying more American oil gas & weapons instead of from the middle east, just taking from peter and giving to paul. Its not as if Japans total imports have suddenly surged. 

I don't think you can get a surge out of declining population and one that already has high living standards.

The best you can hope for in the Japanese market is to be the next big thing and as you say, rob Peter to pay yourself....There is not a lot of scope for windfall gains in Japan by foreign or domestic companies for that matter.

1 ( +1 / -0 )

Lo and behold; the deficit is falling,

more fake news, deficit is now at a 6 yr high thanks to Trumps tax cuts

https://www.cbsnews.com/news/federal-budget-deficit-hits-6-year-high-in-donald-trumps-first-fiscal-year-as-president/

-1 ( +1 / -2 )

American products are beginning to fill the shelves

Can't say I've noticed.

I hope what is on the shelves is properly labelled so people know where it's coming from.

Bright neon-red stickers on stuff that's GMO, chlorine-washed, irradiated, growth-hormone/artificial colouring/preservative-laced, etc., would be appreciated.

-3 ( +0 / -3 )

more fake news, deficit is now at a 6 yr high thanks to Trumps tax cuts

https://www.cbsnews.com/news/federal-budget-deficit-hits-6-year-high-in-donald-trumps-first-fiscal-year-as-president/

America's debt issues are so significant that not only will tax increases be needed, especially at the top end, but service cuts as well and significant ones. America, in order to survive and prosper is going to have to prioritize and go back to a more self sufficient philosophy among the people.

The first Presidential candidate to be truly and brutally honest with the population will get my respect, because I ain't seeing it from either side. The massive debt elephant in the room is mentioned only in passing.

The world is right now paying for America's largesse in the form of government bonds. Sooner or later that is going to end. The fact that America is such a big economy and so central is the only thing that has stopped the rug being pulled out from under it sooner.

-1 ( +1 / -2 )

There is an extra Humvee in my parking garage.  and I did buy a bottle of Knob Creek for the first time in while too.

-2 ( +0 / -2 )

@Kaerimashita--gotta nitpick your first claim in two ways. Humvee was the original military vehicle from the 80s or 90s, then later the civilian model Hummer had fluctuating popularity (but always crappy mileage) until the brand was bought by a Chinese company. Now you can even see bicycles in Japan with the Hummer brand name on them, which with a bit of irony get about the same mileage as all the other bicycles.

0 ( +1 / -1 )

Japan has used orotectionistic economic policies for decades and nobody has given a hoot. Now, Trump has started issuing the same protectionist economic policies and people are going nuts. Good on you Mr Trump. You may be eccentric ad unpopular, but I think your policies of making the world pay to be a part of the American economy is a very good thing. “Pay up or shut up!”

1 ( +1 / -0 )

Many people I'm Japan seem to base friendship as what can I get out of you.

Now that the playing field is levelling, Japan runs to other countries it previously showed no interest in crying free trade.

Japan behaves like a 12 year old playing that little child's game called friends and enemies.

0 ( +2 / -2 )

American products are beginning to fill the shelves

Can't say I've noticed.

I wouldn’t expect you to notice, but it’s happening. Japan is growing increasingly nervous that protestations about rigged markets are starting to resonate with Americans and expedited purchase of big ticket items presages greater liberalization down the track. If America’s current leaders can hold their nerve, China and others are likely to all fall in line.

Wtfjapan: “more fake news, deficit is now at a 6 yr high thanks to Trumps tax cuts”

You need to read up on the difference between the overall budget deficit and the trade deficit. What everyone, except you, is talking about is the latter.

To be fair, I did track down some stats which validate what I said about a bump in exports since Trump’s ascension. Imports too have risen in tandem, but both figures attest to a healthy trend.

https://www.census.gov/foreign-trade/Press-Release/current_press_release/exh1.pdf

-3 ( +0 / -3 )

You need to read up on the difference between the overall budget deficit and the trade deficit. What everyone, except you, is talking about is the latter.

what the point of a trade surplus/deficit when your budget deficit continues to rise, Japan lodges trade surplus most of the time yet it still spends far more than it earns. Trumps tax cuts is just adding to the pain as tax revenues cant cover government expendatures. Bit like saying "haha I beat you I sold more lemonade than you this month!" yet the lemonade factory is still on the path to bankruptsy

There is an extra Humvee in my parking garage

irony is the Hummer brand is now owned by the Chinese. LOL

2 ( +3 / -1 )

A solid improvement on the export side of the ledger, even though there is still an overall trade deficit, as in America’s case, translates into hundreds of thousands of new jobs and a renewed sense of purpose, the pride that comes from work, hope for the future, and the taxation revenues that the government needs to sustain its many programs. You tell us that Japan “spends far more than it earns”, but apparently that’s OK. When America does the same, the sky is apparently falling. At least be consistent.

As for your non-sequitur comment about Humvees, the irony is that the paucity of Chinese or Korean vehicles on the streets of Japan is eloquent testimony to the continuing existence of a mindset that is fast reaching its use-by-date.

-4 ( +0 / -4 )

Japanese may know quality. Unfortunately, the degree to which they are able to avail themselves of superior quality imports has long been circumscribed through all manner of strategms designed to prevent foreign market penetration. Comparing the US, Europe, and Japan, it’s easy to see which markets are more hospitable to foreign products. All things being equal, the European share of the Japanese auto market should be in the vicinity of that which they enjoy in the US, around 8% if your figure is correct. When we examine the stats however, at a glance we can see how distorted and protectionist the market here is. The top 9 companies are all Japanese while superior German manufacturers such as Volkswagen, Audi, BMW, and Benz are little more than niche fillers that the Japanese can tout to the world about how open the market is. Korean cars, which enjoy significant sales in both the US and Europe, are unheard of in Japan. I

-3 ( +0 / -3 )

Volkswagen superior German company. LOL Toyota sells almost the same number of vehicles than VW yet is still about 25% more profitable. Theres a reason Toyota is now the second largest seller of passenger vehicles in the US and its not because it sells inferior products.

-1 ( +0 / -1 )

Very hard to grasp whatever it is that you’re trying to say with your red herrings and illogical non sequitur ripostes. I offered an indisputable example, the car industry, to demonstrate how foreign makers are artificially restricted to little more than niche toeholds, allowed to sell far below what commensurately they should be enjoying if there was a level playing field. And all you can come back with is that Toyota is 25% more profitable than Volkswagen.

Deny it all you like, but the reality is Japanese markets are case studies in multiple levels of regulation (kisei) overkill designed to thwart foreign competitors on trade. The vocabulary of regulation here provides a glimpse of how markets are totally governed by a web of regulatory controls and procedures designed to curtail their free operation. Horitsu, Seirei, Shorei, Tsutatsu and Kisei, then under Kisei there's Kyoka, Ninka, Menkyo, Shonin, Shitei, Shodaku, Nintei, Kakunin, Shomei, Ninsho, Shiken, Kensa, Kentei, Toroku, Shinsa, Todokede, Teishutsu, Hokoku, Kofu, Shinkoku. Plus there's Naiki, and Gyosei Shido and Jorei. So many, many, many varieties of regulations and restrictions, that attaching English equivalents becomes problematical.

America’s new found determination to force Japan to come clean about its market manipulation and distortion operations, the more likely it is that a workable compromise can be found for tackling the unsustainable trade deficit.

0 ( +0 / -0 )

“LOL Toyota sells almost the same number of vehicles than VW yet is still about 25% more profitable. “

All of us living in Japan are fully apprised of how such figures are achieved. Toyota’s greater profitability is a result of significantly greater outsourcing than is the case with Volkswagen. It’s comparatively superior profitability is a smoke and mirrors parlour trick, achieved through ruses such as outsourcing to third party subcontractors which are responsible for a much greater proportion of the finished product than Volkswagen’s subcontractors. It goes without saying that working conditions and salaries there are far inferior to Toyota’s. Then there’s the quasi-militaristic work ethos that confers a huge comparative cost advantage, by denying workers here rights that Volkswagen workers simply take for granted. Two days off a week, flexible working hours, no arbitrary postings to distant places, a minimum five weeks annual vacation able to be used in full, no service overtime, labor laws with real teeth. All of these translate into the higher profits which pad the bottom line and enables Toyota to undercut foreign competitors which are legally obligated to pay for all those things.

0 ( +0 / -0 )

 It’s comparatively superior profitability is a smoke and mirrors parlour trick,

since when do sharholders care what smoke and mirrors or parlour tricks companies use, bottom line is how much they can make from the their shares. FACT remains no other auto manufacturer can produce the profit margins per vehicle sold, that Toyota does and Im talking about general passenger vehicles not luxury models. Is its Toyota fault that EU and AMerican auto manufacturers are controlled by unions!?

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites