Japan: Import of cars, car parts not a threat to US security| MENAFN.COM

Wednesday, 07 December 2022 03:57 GMT

Japan: Import of cars, car parts not a threat to US security

(MENAFN- Gulf Times) Japan said on Friday that US imports of its automobiles and auto parts are not an impediment to US security and will not become one, and import restrictions would have 'devastating effects on the US and global economies.
The Japanese warning, issued in a statement, echoed the warning of two major auto trade groups on Wednesday, which said imposing tariffs would cost hundreds of thousands of auto jobs and dramatically increase car prices.
The US administration in May launched an investigation into whether imported vehicles pose a national security threat and President Donald Trump has repeatedly threatened to quickly impose tariffs.
'The trade relationship with Japan, an ally, contributes not only to the economic prosperity of the US but also to its security, the Japanese government said in a statement, adding that its comments were being submitted to the US Department of Commerce.
'The import of automobiles and auto parts from Japan has not by any means been an impediment to the security of the US, and will not become one.
Trump has made the tariffs a key part of his economic message and repeatedly lamented the US auto sector trade deficit, particularly with Germany and Japan.
Some aides have suggested that the effort is a way to try to pressure Canada and Mexico into making more concessions in talks to renegotiate the North American Free Trade Agreement.
A coalition representing major automakers including Toyota Motor Corp, Volkswagen AG, BMW AG, and Hyundai Motor Co, said on Wednesday the tariffs would harm automakers and US consumers.
Toyota USA added in a separate statement that even a Toyota Camry built in the United States would face $1,800 in increased costs.
'Japanese auto-related companies have played a vital role in supporting the growth of the US manufacturing base since starting business in the US in the 1980s, the Japanese government said.
'Any trade restriction measures... if imposed, could seriously affect more than 1.5mn jobs created by Japanese auto-related companies in the US, and, by inflicting costs on the consumers, lead to devastating effects on the US and global economy.
US Commerce Secretary Wilbur Ross said last week US investigation would likely be wrapped up by late July or August.
The Commerce Department plans to hold two days of public comments in July on its investigation.


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