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Home / Business / Japan to the USA: car tariff would harm the US, the global economy | business

Japan to the USA: car tariff would harm the US, the global economy | business



TOKYO (AP) – Japan's government warned in a Friday report that higher US tariffs could backfire on auto imports. Hundreds of thousands of American jobs by Japanese car companies could make US consumers more expensive and devastate the US and global economy

Japan submitted a position paper to the Japanese Ministry of Commerce on Friday. In May, Trump ordered the department to conduct an investigation to determine whether higher tariffs on foreign-made vehicles and car parts were justified on grounds of national security.

The movement outraged Japanese automakers, who have invested billions of dollars in US factories employ tens of thousands of workers directly.

Any trade restrictions, if imposed, would increase the cost to US consumers and could "seriously affect jobs," the report said. She said the measures would slow down world trade, severely disrupt the market, and put global free trade "at grave risk."

It said that US automakers would lose their competitiveness and export markets would shrink and out of the country, and "eventually undermine the entire US economy."

Japan said up to 624,000 people could lose their jobs in the US if a 25 percent tariff on cars were levied and auto parts and other retaliatory countries resorted, citing a study by the Peterson Institute for International Economics

Japan, already hit by increased US steel and aluminum tariffs, has told the World Trade Organization that it could levy retaliatory tariffs on US goods worth a total of 50 billion yen ($ 450 million) per year

Japan, in The report claims that "broad trade restrictions on automobiles and car parts in the name of safety raise serious questions about WTO compliance." Possible countervailing or retaliatory measures from other countries could also harm manufacturing in the US and agriculture.

The report states that Japanese auto companies have made significant contributions to the growth of US manufacturing facilities since the 1

980s. They have created over 1.5 million jobs across America and produce about 3.8 million cars in the US.

Japanese companies have invested over US $ 48 billion in the US, have maintained jobs, developed human resources and competitiveness, and contributed to US society like any US company, the report said.

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