Japan’s economy risks taking another hit if U.S. President Donald Trump slaps fresh tariffs on China, sparking a renewed U.S.-China trade war, according to the government’s chief economist.
"If a U.S.-China trade war leads to higher tariffs, it’s likely to negatively affect Japan’s economy, based on past experience,” Tomoko Hayashi, chief economist at the Cabinet Office, said in an interview.
Still, Japanese companies may be a little better prepared to deal with the fallout from Trump’s policies this time than they were during his first administration, given a widening of supply chains and more familiarity with the president’s tactics, Hayashi said.
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