We estimate that in the near-term, the drag on Japan’s exports resulting from of a universal 10% US import tariff could be nearly offset by Japan gaining market share at the expense of China in response to a much higher US tariff on Chinese imports. However, in the long run Chinese firms would probably mimic their Japanese counterparts and relocate production overseas, limiting any gains for Japan.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.