More than 70% of Japan firms see tariff impact within expectations, Reuters poll shows

Written by Kyuchi Tokaka

A survey of Reuters on Thursday showed that Tokyo (Reuters) -a large majority of Japanese companies found that the commercial influence on US President Donald Trump’s tariff was part of expectations and did not find it necessary to change investment plans.

The United States imposed a 10 % tariff on goods from most countries, along with an additional tariff for many major trading partners including Japan, which may face a 24 % tariff from July unless it can negotiate a deal.

There is also a 25 % tariff for cars, which is a certain painful point for Japan whose economy depends greatly on car exports to the United States.

About 71 % of the respondents in a Reuters poll said that the impact of the American definitions on the initial expectations, said 84 % that they were planning to adhere to their investment plans for the current commercial year – usually April to Japan.

“After all, the Trump administration ends in four years. If we do not continue with our long -term investments, we will lose in competition with other Asian countries,” wrote a manager at the machine manufacturer in the survey.

The survey was conducted by Nikkei Research to Reuters from 4 to 13 June. Nikkei Research communicate with 504 companies and 220 he responded, provided that his identity is not disclosed.

The survey showed that four out of 10 of the respondents said that they opposed any tax reduction, while the rest said that there should be a form of reduction.

Reducing the tax to help the public with prices increased a major issue before the elections in the House of Representatives to be held in July.

10 % tax is applied to most goods and services. Food and newspapers are 8 %.

The largest democratic constitutional opposition party in Japan has suggested reducing the 8 % rate of food to zero for one year. Prime Minister Shigro Ishiba, head of the ruling liberal Democratic Party, is opposed as sales tax revenue.

“The opposition parties are unaware of the sales tax. It is the tax that must be lifted,” said an official in the mineral and machine maker.

With three out of 10 people between the ages of 65 years or more, Japan is the most advanced society in the world.

The manager in a transportation company preferred to reduce temporary sales tax, comprehensive “to combat inflation and stimulate consumption”.

The survey showed that about 63 % of the respondents said that the government should not rely on issuing bonds to fill in the shortage of revenue in the event of a sales tax reduction, while 37 % were in their favor.

“The aging of the population will advance and social security costs will be greater. We must not move to tax cuts or the issuance of government bonds with a slight.”

About the formation of the ruling coalition after the House of Representatives elections, 32 % of the respondents preferred the current ruling bloc of the Johnny Democratic Party partner and the novice partner Commisto, while 20 % wanted the Democratic Party of the People to be a third partner.

Last year, LDP and Komeito lost its common majority in the most powerful lower chamber, making it difficult for ISHIIBA Policies. The Democratic Party made people in four seats in the House of Representatives.

(Participated in the reports of Kyuchi Tokaka; edited by Christopher Kushing)