Japan was fiercely attacked by an US automaker group in a US trade negotiating objectives hearing yesterday. The United Auto Workers representative criticized that the Japanese auto market is largely closed because of non-tariff barriers. Those barriers include Japan-specific regulatory, safety and emissions standards. Also, he said Japan manipulated its currency to push down the value of the Yen.
The UAW representative Desiree Hoffman went further and said “these barriers have created an uneven playing field, so much so that for every car that the U.S. exported to Japan in 2017, Japan sent 100 back”. And, “any loosening of the 2.5 percent automotive or 25 percent light truck tariff would further direct Japan’s overcapacity to our shores, exacerbating the problem.” Hoffman demanded Trump’s administration to impost strict import quotas on Japanese vehicles.
Japan Finance Minister Taro Aso responded calmly regarding currency manipulations. He said that “we have agreed with the U.S. side that any questions on currencies will be discussed with the U.S. Treasury Department, and so far it hasn’t been brought up.”
