On Friday, the Nikkei Asian Review led a report, citing that the negotiators of Japan firmly opposed the American proposal.
Additional take -out meals
- American tariff negotiators have presented a framework for an agreement with Japan.
- The American framework included the reluctance of reducing prices on cars, steel, aluminum.
- The American framework proposal for Japan focused on reciprocal prices.
Market reaction
Following this report, the USD / JPY defends 145.00, still down 0.19% during the day.
FAQ prices
Prices are customs duties levied on certain imports of goods or in a product category. The prices are designed to help local producers and manufacturers be more competitive on the market by providing a price advantage compared to similar products that can be imported. Prices are widely used as protectionism tools, as well as commercial barriers and import quotas.
Although prices and taxes both generate government income to finance public goods and services, they have several distinctions. The prices are prepared for the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on taxpayers and individual companies, while prices are paid by importers.
There are two schools of thought among economists concerning the use of prices. While some argue that prices are necessary to protect national industries and approach commercial imbalances, others see them as a harmful tool that could potentially generate long-term prices and lead to harmful trade war by encouraging the tariffs of Tit-For-Tat.
During the presidential election in November 2024, Donald Trump clearly indicated that he intended to use prices to support the American economy and American producers. In 2024, Mexico, China and Canada represented 42% of the total American imports. During this period, Mexico stood out as the best exporter with $ 466.6 billion, according to US Census Bureau. Consequently, Trump wants to focus on these three nations during the taxation of prices. It also plans to use the income generated through prices to reduce individual income taxes.
