Japan swallowed voluntary export curbs in the past, so Washington may find this as an attractive option. But this is something Japan must absolutely avoid. I can't think of any sector in Japan that can replace its giant auto industry as a key driver of growth.

The fact that they can't think of anything is just a symptom of why the J-gov is so ineffectual. Inept, incompetent, whatever.

Japan has plenty of potential. It has plenty of options. But since those options don't include passing thick brown envelopes to bureaucrats or other calcified, moronic nineteenth century mercantilist centrally controlled ideas, they're not seen.

Reagan did that. Tariffs on Japanese semiconductors, TVs, PCs, plus quotas on cars.

I find it laughable that today's free-trader globalists see Reagan as a hero. But not surprising: neo-liberalism is a confused, brainless, bankrupt ideology, anyway.

David- Excellent post!

I think it is a pretty astute observation by Mr. Muto.

Can’t or won’t think? Unable to? Refuse to?

Bit of all the above?

Symptoms of a lazy and unimaginative mind that wants everything to stay the same and never change. These are the leaders of the nation.

Japanese automakers have been very successful in China. They should work more aggressively in the China market. China is the future. US is the past.

Muto is right. On steel, Korea accepted a quota and Japan did not. Now Korean mills are idle while Japan has full production. Those tariffs are paid by the Americans, it is a new tax.

Plenty of US consumers will still buy Japanese cars even if they have to pay a tariff. Wonder which way they will vote next time.