Japan Economics

Trade war & peace

Japan Economics Weekly
Written by Capital Economics Economist

The trade war between China and the US will cause some collateral damage but the biggest potential threat to Japan’s economy is a US tariff on Japanese cars. For now though, our base case is that the tariff won’t be as high as Trump had threatened and vehicle sales won’t fall much. So at this stage we don’t think that the growing trade war justifies any change to our GDP forecasts.