Higher U.S. tariffs on Japanese cars less likely, trade war posing risk: Reuters poll

TOKYO (Reuters) – Higher U.S. tariffs on Japanese car exports are less likely now the two nations agreed to start new trade talks, economists said, but most think U.S. trade friction with China and other economies will have a significant impact on Japan.

The United States had threatened to slap 25 percent tariffs on auto exports from Japan but Washington agreed not to do so while fresh trade talks are underway.

President Donald Trump has made clear he is unhappy with Japan’s $69 billion trade surplus with the United States – nearly two-thirds from cars – and wants a two-way agreement to address it.