Banca March | Japan will receive a ‘reciprocal’ tariff of 24%, in addition to the 25% already implemented on cars. As Prime Minister Shigeru Ishiba pointed out, the automotive industry is a ‘pillar’ of its economy. In an effort to ease tensions, Ishiba and Trump spoke on the phone, reflecting Japan’s willingness to seek an agreement. Scott Besset, US Treasury Secretary, expressed his expectation that Japan would be treated as a priority given its rapid response and rapprochement.
Trump threatens to escalate tariffs on China by an additional 50 p.p. starting tomorrow and to suspend talks with the Asian country. Last week Trump announced that the reciprocal tariff on China would be 34% and, in response, China revealed that it will also add an additional 34% rate to all US imports. Trump, dissatisfied with the reprisals taken, has threatened to add 50 p.p. to the tariff rate (instead of 34 p.p.), which would bring the effective tariff on Chinese imports to over 120%.
