New Delhi:
India and Japan are the least affected economies due to the strength of domestic demand for marry trade tariffs. A report by Morgan Stanley released on Friday states. The ratio of goods exports in GDP is the most important metric; This determines the range of trade of economies. This helps global research firms to assess which economy will face more negative pressure on development.
25 percent tariff applied on auto imports
The US has also implemented 25 percent tariff on auto imports. The report states that Japan and Korea will be the most affected by imposing 25 percent tariffs on auto and auto parts, as both the country’s auto exports to the US are 7 percent of their total exports.
The US administration can propose a plan for recipes in trade relations on 2 April. The US administration is also indicating that it will impose regional charges on energy, pharmaceuticals, semiconductors, agriculture, copper and wood.
Reciperook tariff will be affected by almost all economies in Asia
Morgan Stanley’s report states that “reciperochl tariff will affect almost all economies in Asia either directly or through economy-specific charges or regional charges. But our main concern is that policy is that policy puts weight on ‘capital expenditure’ and ‘business’, which causes damage to the business cycle.”
The US runs a proper large joint deficit in passenger vehicles at US $ 245 billion, vehicles for freight transport and auto parts (including EV batteries). In this deficit, Asia is 115 billion US dollars or 47 percent. Within Asia, Japan, Korea and China make three economies a large part of this deficit. Three economies are ranked second, third and fourth among the top 10 economies with which America runs the largest auto deficit.
The report said, “For Japan and Korea, a large part of the deficit is connected to vehicles and non-batary auto parts. For China, a large part of the deficit comes from the EV battery.”
Japan’s GDP growth
Japan’s chief economist Takeshi Yamaguchi said that if 25 percent auto tariff remains in force for a long time and the US decreases by 15-30 percent in auto exports, it will have a negative impact of 0.2–0.3 percentage points on Japan’s GDP growth.