The Japanese government reduces its evaluation of corporate profits against the backdrop of customs duties
Tokyo on August 29 / WAM / The Japanese government has reduced its evaluation of Japanese companies’ profits against the backdrop of apparent stalemate in these profits due to the impact of the high American customs duties on auto manufacturers and other manufacturers.
In his monthly economic report for the month of August, the evaluation of the Cabinet Office remained that the local economy was “recovering at a moderate pace”, supported by strong commercial investments, especially in the field of digitization between non -manufactured companies. However, the office pointed out that “the effects of American commercial policies and the like are noticeable in some fields,” as its evaluation of companies’ profits was reduced for the first time in eight months, adding that their impact on companies and employment investments should be monitored closely. Last month, the report pointed to the improvement of profits, with the need to “pay attention to the effects of commercial issues.”
In late July, Japan agreed to impose customs duties by 15% on cars and the rest of the United States.
The so -called mutual customs duties entered into force on August 7 without granting Japan an exemption from the accumulation of customs duties, which means that the United States will add a rate for each country in addition to previous customs duties. After the US government approved the relevant presidential executive error, it announced that it would restore any extra customs fees collected as a result of this error.
Under the agreement, American customs duties were reduced to 15% from the current 27.5% of cars and auto parts from Japan. However, it is still unclear when the low rate will enter into force.
The economic report issued by the office confirmed that the exports were “almost stable”, leaving its evaluation without changing it last July. The office also maintained its evaluation of private consumption, which represents more than half of the Japanese economy, with its indication that “consumer confidence improves slow.” The report raised the evaluation of public investment, while its evaluation of housing construction was reduced.
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