Trump demands Japan to expand car production in the U.S., new tariff measures will strike Japan again.
The U.S. President Trump delivered a speech on his first 100 days in office in Michigan State, which is concentrated with automobile industry, on April 29th local time. In the speech, he said, "A large number of Honda cars are imported into the U.S. I don't want cars made in Japan, I hope they can be made here (in the U.S.)." He demanded overseas automobile manufacturers, including Japan, to expand their production within the U.S. According to reports, the Trump administration has launched new "tariff measures". Starting from October, an entry port fee will be levied on car carriers built outside the U.S., and each entry port fee will exceed 1 million US dollars. This tax system will also heavily hit Japan.
The rally location for Trump's speech on the 100th day of his administration was in Macomb County, a suburb of Detroit, the automobile industry center. Trump expressed dissatisfaction with the large import of Japanese cars into the U.S. and said, "I like Japan. But I hope cars are not made in Japan but in the U.S."
He also mentioned the issue of imposing additional tariffs on cars. Despite concerns about the impact of tariff measures, Trump emphasized that this would help bring jobs and investments back to the U.S. domestically, thus protecting the U.S. industry.
In his speech, Trump boasted about the results of implementing high tariffs on automobiles and parts. He said, "This will create more jobs for Michigan and the entire United States and help automobile manufacturers build factories as quickly as possible." He emphasized the policy goal of promoting the return of the automobile industry to the U.S. mainland.
The Trump administration plans to implement so-called new tariff-related measures starting from October. This measure will impose an entry port fee on car carriers built outside the U.S. The aim is to protect the U.S. shipbuilding and shipping industries. For example, for a large carrier capable of loading 7,000 vehicles, each entry port fee will exceed 1 million US dollars [approximately 144 million yen], which is essentially equivalent to a tariff.
The purpose of this policy is to protect the domestic shipbuilding and shipping industries under the pretext of "indispensable economic security."
The entry port fee is based on Section 301 of the U.S. Trade Act, which stipulates sanctions against unfair trade practices abroad.
Countries with larger shipbuilding volumes will be affected. Data from 2023 shows that China ranks first with a share of over 50%, South Korea accounts for 28.3%, and Japan accounts for 15.4%.
This new tariff measure will directly hit Japan. In terms of the operation share of car carriers, Nippon Yusen is ranked first, Mitsui OSK Lines is third, and Kawasaki Kisen Kaisha is fourth. These three companies account for approximately 40% of the market share combined.
The Office of the U.S. Trade Representative (USTR) announced on April 17th that according to Section 301 of the Trade Act of 1974, it has decided to take measures against China in maritime, logistics, and shipbuilding fields. Starting from October 2025, additional fees will be levied on ships operated or owned by Chinese enterprises and ships built in China when entering U.S. ports. Furthermore, for car carriers, not only those built in China but all vessels built outside the U.S. will be subject to additional fees when entering U.S. ports.
Source: rfi
Original article: https://www.toutiao.com/article/1830818058874887/
Disclaimer: This article represents the author's own views.