Japanese finance minister Katsunobu Kato told G7 countries on Thursday that “US tariffs are highly disappointing.”
Additional quotes
- American and countermeasted tariffs are creating uncertainties in the financial market.
- He emphasized that the promotion of the free trade regime is important.
- A constructive political discussion is important.
- No comments on Besent’s statements about currency exchange.
- Many countries refer to US tariffs.
- The currency exchange rate must be determined by the market.
- An excessive movement in the currency market negatively affects the economy.
- At the meeting with Bessent tomorrow, I hope to have conversations based on prior understanding about the need for the two countries to coordinate closely.
- He raised China’s excessive capacity as a topic that needs to be resolved in the G7 meeting.
- He told the G7 meeting countries that they need to work together to urge China to take measures to address internal imbalances, helping to make the most balanced global economic system.
- American tariffs and the countermeasures of some nations have increased uncertainty, destabilized markets, including currency, and have a negative impact on the economy.
- Each country must monitor developments to maintain economic and market stability and take the necessary measures while cooperating agilely.
Market reaction
At the time of publication, The USD/JPY It is going down 0.41% in the day to 142.80, little affected by these comments.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
