Japan concerned over impact of U.S. tariffs on China, others

We will have to closely look at how Japan would be particularly affected and take the necessary steps (in response)," Kato said, partly referring to inflation concerns linked to the hefty tariffs imposed by the Trump administration.

Don't worry Kato-san, the MAGA fans told us that the tariffs will never ever lead to inflation! You can trust them!

Won’t the retaliatory tariffs in the same amount do the exact same for the consumers of that country?

This is the difference between across the board tariffs and selective tariffs.

Canada’s retaliatory tariffs are focused on select products (like alcoholic drinks) where Canadian consumers have options and can just buy non-American so the tariff doesn’t hit them. Stuff from the US where substitute products aren’t available are generally being excluded from tariffs.

US tariffs are being applied to everything, even things Americans don’t have domestic options for that they can just easily switch to, so its going to have a bigger inflationary effect there. Plus the US is putting across the board tariffs on multiple countries simultaneously, while Canada, Mexico and China (and whoever is next on Trump’s list) are just hitting a few US products.

President for 13 days and he's already started a trade war with America's two biggest trading partners, neither of which have an adversarial relationship with us.

US Households will simply smartly radically change spending habits.

In other words Americans will have to stop buying stuff because they won’t be able to afford it anymore.

the difference is that many of the tariffs imposed on u.s. imports are things the u.s. doesn’t produce or manufacture.

for example, over 50% of the fruits and vegetables in the u.s. are imported from mexico.

domestic fruits and vegetables will go up in price just as much as imported ones.

that always happens with tariffs. domestic producers of any product will raise their prices to the same as imported and tariffed products to make more money.

not only at the supermarket, but at restaurants too, so those prices will go up also.

obviously,, mexico has enough fruits and vegetables. their prices won’t go up because they don’t need to import them.

I’m sure Kato will abolish the tariffs on rice if the US scraps generous subsidies to the US farmers.

Alan HarrisonToday  05:07 pm JST

If Kato is so concerned maybe he should lead by example and remove the 775% tariffs imposed on rice imported into Japan.

Wouldn't make any difference. Japan only imports 7.2% of it's annual rice consumption and that's only to abide by WTO agreements. Imported rice in Japan doesn't reach the consumers.

Just as US farmers are protected, Japanse rice farmers are protected.

so who not don’t retaliate at all, and your people aren’t “taxed” by your country at all for anything?

We’d love to not impose tariffs, but our dumbass neighbor has decided that is the game he wants us to play.

China, Mexico, and Canada are the top three countries with which the US has a trade deficit in 2023.

They are followed by the EU, the Asian NIEs, and Japan.

No wonder Japan is worried.

The arrogance of this person will only result of putting aside the US. The world will continue to do business but avoid the "old" US.

shoe prices will go up. there is no shoe manufacturing in the u.s., so your choice is to pay more or stop wearing shoes. chinese people don’t buy american shoes. there aren’t any, so shoe prices won’t go up in china.

same for clothing. so much is made in china. american clothing makers are a tiny sliver of the market and all are high priced niche brands. american companies aren’t going to invest in building clothing factories. it’s cheaper to pay the tariff and increase the price.

won’t affect the price of clothing in china or japan. no american imports of clothing.

oil products are the biggest imports to japan from the u.s. since japanese refineries are setup for light sweet oil, u.s. produced oil can be used.

but japan has been shutting down refineries because consumption is going down - less people and older people.

John-San

2025 will see the end of alliances with the USA in favour of the socialist China.

Diplomacy and commerce trading would be the natural outcome for Japan, to enrich both their economies. But Washington and most of the legacy media are trying to paint China as the number one enemy,  inciting anti-Beijing sentiments by any means.

The problem is the US refuses to change and accept the fact that it’s no longer the sole hegemon.

And for these reason the growth of the nations in the Asias continent is limited, as the US administration is putting their own interests first

Won’t the retaliatory tariffs

people are retaliating against Tesla. Down about 5~7% to far today. What was Musk thinking doing the Hitler salute?

American rice now too expensive so most Japanese buy the much cheaper in price Japanese rice?

Japanese people don't want American rice. This is Japan.

The entire world needs to be concerned, because Trump is taking a wrecking ball to everything he can reach. He could literally be the cause of the downfall of our current civilization.

Trump see's himself in competition with a few other individuals to build new empires around the globe. This will have implications for Japan and indeed all nations.

Russia wants to reclaim the old Soviet Union into a new greater Russian empire.

China wants to own the South Asia sea including territory now Philippines, Indonesian, Japanese and more.

America wants the Panama Canal, Gaza, Greenland and Canada.

The world is slowly going crazy, as well as over heating through man assisted climate change.

I feel so sorry for the young as it is they whose whole lives and futures are being threatened.

For some products tariffs will decrease the number of exports.

As I fear, an international trade war may be inevitable, the end result of Trump's "America First" policy.

Every country imposes tariffs on imported foreign goods to protect domestic producers. But Trump's tariffs are different by nature in meaning.

In terms of stock, though not in flow, Japan was the largest source of foreign direct investment in the US in 2023 (the latest year available). The second largest, at just one percent behind Japan, was - you’ve guessed it - Canada. Be afraid, Japan, be very afraid.

Oh my Lord what has Mr T started? All I can see is tit for tat retaliations, who will win? I don't think over all that there will be any one winner, the major looser will be the general public who will suffer the most, it's certainly going to raise inflation and the price of goods, if anything it's going to cause a lot of companies to close, it depends on when these tariffs take place, I am convinced that some companies have already agreed and signed contracts to provide goods at a set price, now these goods will jump up in price, so does the company absorb the rising costs? Can they? What about contractual agreements? Will this lead to court cases where goods were not delivered at the agreed price?

The arrogance of this person will only result of putting aside the US. The world will continue to do business but avoid the "old" US.

As it should be..

it's certainly going to raise inflation and the price of goods, if anything it's going to cause a lot of companies to close

So delicate that just higher prices and some companies closing will rattle the US.

Seriously?

It’ll make your people and your country stronger instead of a bunch of Negative Natasha’s and Whiny Wendy’s.

*price of avocados will be higher….oh no!

*but he wasn’t elected…this is a democracy!

Trump might tell Japan to contribute more and he’s right. Just the brand US Military ensures deterrence and is worth much more than what Japan’s paying.

You come across apprehensive and afraid while the rest of us live in peace because we know Putin Xi and Trump are stable solid leaders.

Peace??

"This is amusing. It’s all in your head. Look at what Western media has done to you."

Imagine thinking that the world is a better place for those three murdererous psychopaths.

What happened to you?

Precisely rainyday, Tariff disputes rarely last long,

From a economic point of view both governments are compelled to agree to a compromise .

In Canada class, a political dimension could be in play,

Trump has accused the both the Mexican/Canadian governments of allowing undocumented illegal migrants, plus the illicit smuggling of lethal fentanyl into the US through lax border security.

So the logic of a Tariff war in some respects mystifies.

I guess we will see.

Would you oppose tariffs if the government simply redistributed receipts back to citizens? In other words, prices might go up on goods with no domestic substitutes, but you'd eventually receive a cheque from the government to reimburse you for any tariffs paid. How would you argue against this?

What would be the point of doing any of that?

Also, tariffs aren't an abandonment of comparative advantage. They simply raise the level of how competitive a foreign product must be. If it's still significantly cheaper to manufacture buttons in China, then button companies will still chase those cost saving. However, if it's only marginally competitive, then tariffs will prevent these industries (and associated industries) from relocating on a whim.

Depends. If the US wants to protect or develop given industries where it faces unfair competition, such as from low labor costs in China, then the argument in favor of tariffs makes more sense.

But If the argument is to just tariff everything, including stuff the US is simply incapable of producing itself no matter what (bananas, rare earth minerals, etc) then that does mean giving up some of the benefits of comparative advantage. Your country just ends up not using as much of those things even if there are things they could beneficially be used for, without any benefits that would justify the loss.

So you are going to intentionally tax your people for no reason because someone else is taxing their people? 

Glad to see that you admit that Trump is raising taxes on the American people.

Hope you enjoy paying them.

I detest continuing an alliance with this now Neo Fascist country. Where the population place great emphasis and power and worship on Wealth.

2025 will see the end of alliances with the USA in favour of the socialist China. Don’t blame the wealthy because the USA culture detest giving hand up to the weak and promote the wealthy and popular entertainment icons. We been con into thinking China Russia and Socialist thinking is evil but the truth is we see the true evil that was emerged from rich popular Idolatry.

Trump is a coward ,once confronted,lots of NGO made the DOJ rescind their illegal orders,when confronted by Judicial sanctions,he sunk the stock market

The point of the tariffs was never frivolous— it was to get results, and it’s clear that the Trump administration is already seeing a response, first from Mexico and now Canada.

Just two weeks in, Trump is proving that when clear expectations and penalties are set, other countries listen.

Occupied Japan and Occupied South Korea will be the next places where the "eye of Sauron" will land. America certainly doesn't need cars from Japan or Playstations (X Box is just as good) or Mizuno baseball gloves from Hyogo.

The Tariffs are complete stupidity but this isn’t the worst issue for those who didn’t vote for this Fascist in both election and the Fascist he put in place to head the USA a uncertain future of Fascism. Walk now while USA passport still hold value of a decent citizen because in 12 months the value will be the same as an Israeli passport. We all know what happens to the last Fascist governments. The USA citizenship vote for this fascist not once but twice even after the 19/1 attempted takeover so the die had been casted. Those who didn’t vote for Trump are thinking “he get vote out” in 4 years. Really? I know that the majority of the world democratic nation are talking sanctions already. Just that they were blindly led into a conflict with Russia and have to approach the whole issue in a different tack and this will take negotiating away Ukraine . Fascism has no place on this earth and the sooner we defeat it the better.

Kato said on a TV program that he is "very concerned about the possible impact on the global economy,"

Who relies on the global economy? Japanese corporations who are too slow to see the wholesale structural change, or Japanese people who wants to pay less tax and earn more?

Trump 1.0 buy more American, Biden made in America, Trump 2.0 let foreigners payoff our debt instead of American workers, and newly minted Ishiba government still talking about 'global'? Sigh....Japanese people certainly didn't want him...so who does?

It is the impact of Tariffs on consumers discretionary spending that can have a detrimental impact on the global economy.

Consumer budgets will tighten even further, add in the still on-going pandemic the cost of living crisis, consumers will prioritise necessities, groceries over upgrading gadgets, clothing, short breaks, hospitality etc.

This will make domestic production/goods more attractive purchases, impacting imported goods competitiveness.

Domestic home grown products will gain an advantage, short term inflation could be impacted, however consumers will adapt.

If Kato is so concerned maybe he should lead by example and remove the 775% tariffs imposed on rice imported into Japan.

Customers/consumers will reject the increased costs, smarter spending/adaptability will compel a behaviour to navigate the pending "retail" reality when domestic good/products gain competitiveness.

Look think logically the research states these Tariffs left in place have a clear negative impact on US households budgets in a range up to $7,000 $8000 in additional annual costs without a comprehensive change to consumer choices.

US Households will simply smartly radically change spending habits.

As will the retail sector.

Walk into your local supermarket, I will wager trolleys will pass by the products/items impacted from the tariff hikes.

@rainyday

Would you oppose tariffs if the government simply redistributed receipts back to citizens? In other words, prices might go up on goods with no domestic substitutes, but you'd eventually receive a cheque from the government to reimburse you for any tariffs paid. How would you argue against this?

Also, tariffs aren't an abandonment of comparative advantage. They simply raise the level of how competitive a foreign product must be. If it's still significantly cheaper to manufacture buttons in China, then button companies will still chase those cost saving. However, if it's only marginally competitive, then tariffs will prevent these industries (and associated industries) from relocating on a whim.

The US tariffs will increase priced for US consumers, supposedly.

Won’t the retaliatory tariffs in the same amount do the exact same for the consumers of that country?

so if tariffs are really “taxes on your own citizens” why are countries responding with tariffs of their own in response?

or, was American rice now too expensive so most Japanese buy the much cheaper in price Japanese rice?

I can get Japanese peanut butter for 280 yen, why is US peanut butter 4x that cost?

it didn’t go up in price at all, why?

Canada’s retaliatory tariffs

so who not don’t retaliate at all, and your people aren’t “taxed” by your country at all for anything?

domestic fruits and vegetables will go up in price just as much as imported ones.

will they? So when American rice was tariffed by Japan, Japanese rice went up in price just as much?