Japan More Threat in High Oil Prices Than Trump Tariffs
(Bloomberg) -- A major question hanging over Japan Inc. is whether the U.S. will raise tariffs on Japanese car imports. Though that’s temporarily avoided, this would hurt, given the importance of the auto sector for Japan’s economy. Attracting less attention, but perhaps equally important though, is the outlook for oil prices and whether U.S. pressure on Middle East producers succeeds in bringing them down, according to Bloomberg Economics research. Japan relies heavily on imported oil, so a price decline could deliver a significant boost to its terms of trade.
©2018 Bloomberg L.P.