GIFU, Apr 09 (News On Japan) –
The affect of former President Donald Trump’s tariff coverage is spreading past the auto trade and now threatens native manufacturing sectors in Japan’s Tokai area, together with long-established pottery makers in Gifu Prefecture.
“Just how far will Trump’s tariff policy reach? We visited a Mino ware kiln exporting to the United States to find out,” stated announcer Takashi Uesaka in a report.
At Kaneko Kohyo Pottery in Toki City, Gifu Prefecture, an organization with over 100 years of historical past, the consequences of the coverage are being felt.
Q. Did you anticipate ceramics to be hit by tariffs as properly?
“Not at all. We were honestly shocked and unsure how to respond,” stated firm president Yuki Ito.
The firm started increasing abroad a few decade in the past, specializing in Europe, and in 2018 entered the U.S. market. Currently, exports account for 10 to fifteen % of complete gross sales, with roughly half of that going to the U.S., elevating issues over future efficiency.
“In the U.S., our products already sell at higher prices than in Japan due to distribution costs. If tariffs push prices up even further, I’m worried about how consumers will react,” stated Ito.
However, he additionally sees a possible upside: the possibility for handmade objects to be acknowledged as luxurious items.
“If price-conscious customers drop off and we are left with those who truly value our products, it might actually help us strengthen the Kaneko Kohyo brand worldwide,” he added.
Negative results on every day life might observe
Economic specialists warn that the ramifications of Trump’s tariff coverage should not restricted to U.S.-bound exports.
“If countries like China and Vietnam also face tariffs on exports to the U.S., their economies could slow, and demand for exports from Japan and the Tokai region could decline as a result,” stated Hiroaki Tsukada from Mitsubishi UFJ Research and Consulting.
As exports stall, the danger of broader financial affect grows.
“Export disruptions can lead to slower domestic production and a weakening economy. That, in turn, affects household income and stock prices. Even if inflation slows due to weaker growth, it doesn’t mean living standards will improve,” stated Tsukada.
The turmoil brought on by the Trump tariffs seems prone to persist for a while.
Source: Nagoya TV News