Japan takes pre -emptive steps before Trump fees enter into force

As American customs duties approaching approaching, Japan is intensifying its diplomatic efforts to try to find a compromise, amid warnings that the escalation of the trade war may lead to widespread disturbances in the global markets.
Japan raced time to take preventive measures before entering the new American customs duties imposed by US President Donald Trump, in effect, amid increasing concern about its impact on the Japanese economy and global supply chains, according to the global economic “Yahoo Finance” website.

Japan anticipates tram

The Japanese government has announced a package of economic measures to support local companies that may be affected by the upcoming American fees, which target the auto, technology and mineral sectors.
Also read: Trump is waving the imposition of customs duties on Japanese commodities … and explains the reason
These procedures include tax facilities and financial incentives for exporting companies. While increasing the strategic stock of some affected raw materials. Promoting commercial agreements with the main partners in Asia and Europe to reduce dependence on the American market.
According to government sources, extensive talks are taking place between Tokyo and Washington in an attempt to alleviate economic damage, amid the Trump administration’s insistence on implementing the new protectionist policy.

Fighting disorders in cars and technology

The Japanese auto industry is one of the most affected by the American customs duties, as companies such as Toyota, Honda and Nissan are largely dependent on the United States market. These companies are now facing higher production costs, which may raise cars and profit reducing.
Also read:
For his part, Haruki Suzuki, an economist at the Tokyo Financial Research Institute, said that the effect may exceed the auto sector to include advanced technology, such as semiconductors and electronic components, noting that American restrictions will affect global supply chains, not only on Japan.

Financial markets under pressure

The Japanese markets have witnessed sharp fluctuation in recent days, with fears of slowdown due to customs duties. The Nikki 225 index recorded a 2.3% decrease in Wednesday’s trading, while the Japanese yen witnessed a slight increase against the dollar due to investors’ demand for safe assets.

Fears of reprisal reactions

Analysts believe that imposing these fees may lead to an escalation of trade tension between Japan and the United States, which may cause Tokyo to respond with similar measures, such as imposing restrictions on imported American products, especially in the areas of agriculture and energy.
Mashera Yamamoto, an analyst at Mizuho Bank, said that the Japanese economy may be subjected to a double blow, as companies will face a high cost on the one hand, and may have to face retaliatory measures from the United States if Tokyo decides to take counter steps.