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U.S. President Donald Trump as well as Japanese Prime Minister Shinzo Abe shake hands at a news conference at Mar-a-Lago resort on April 18, 2018.
Japanese Prime Minister Shinzo Abe, fresh by winning a third term as premier, is actually required to walk a fine line when he meets President Donald Trump next week as Tokyo looks to avoid a trade war with the U.S.
Earlier which month, Trump indicated he could impose a 25 percent duty on imports of Japanese vehicles as well as automotive parts as part of a strategy to reduce U.S. trade deficits with the international community. The move is actually widely seen as a bargaining tool for Washington to get what which has long sought by Tokyo — a free trade agreement.
However, the planet’s third largest economy is actually opposed to a bilateral trade deal as well as must find some other ways to appease Trump, strategists told CNBC.
“I don’t think there’s any reason not to take [Trump] seriously,” said Tobias Harris, vice president at Teneo Intelligence: “So currently, Japan has to entertain either some pretty serious market access concessions or enter FTA talks — both things which Japan has tried to avoid since Trump took office.”
The matter is actually required to dominate Abe’s summit with Trump which is actually slated for Sept. 26 in brand new York.
The tariffs are considered economically damaging for the Asian giant since passenger cars make up around 30 percent of Japanese exports headed stateside. which’s also politically embarrassing for Abe, who has presented himself as someone with close ties to Trump, Harris explained.
If Trump acts on his threats, Abe will find himself in a situation where he has to retaliate with similar measures as well as which could derail the broader bilateral relationship, said Harris. which’s currently the case with Beijing, which has responded to Trump’s trade penalties with tit-for-tat measures.
“which situation is actually obviously something Abe wants to avoid,” Harris stated.