Japanese economist: US tariff hikes will affect US economy

Added On May 18, 2019

A Japanese expert has said the U.S. tariff hikes will have a negative impact on the U.S. economy and put the global economy at risk.
Economy Report went to find out more.
Kiyoyuki Seguchi, Research Director of the Canon Institute for Global Studies, shared his views about Washington's increased additional tariffs on 200 billion U.S. dollars' worth of Chinese imports.
SOUNDBITE(CHINESE) KIYOYUKI SEGUCHI, Canon Institute for Global Studies
"The U.S. move will cause economic damage between China and the United States. In that case, firms in the U.S., both U.S. firms and foreign firms, will suffer a great blow, and they will face bankruptcy. Then some banks will decide to stop lending to these enterprises, which will cause the bankruptcy of lots of enterprises. It will also lead to unstable financial status in the U.S., which could go global, and cause global financial instability around the world, and then affect the exchange rate. Exchange rate fluctuations will cause large-scale bank losses, large-scale bank losses may cause global financial crises, which is the worst-case scenario."
The economist expressed his optimism towards China's economic growth.
He said the country's economy has been growing steadily with the economic stimulus policies that the Chinese government has implemented.
SOUNDBITE(CHINESE):KIYOYUKI SEGUCHI, Canon Institute for Global Studies
"Before the beginning of the first quarter, everyone was afraid that the economic growth rate in the first quarter would decline rapidly. Thanks to the stimulus policies implemented by the Chinese government, the worst situation has now been avoided. Now that it has overcome the bad situation in the first quarter, the Chinese economy is on a relatively stable track."
The economist said with the impact of value-added tax, the actual economic growth rate is a little higher than the real growth rate.
SOUNDBITE(CHINESE) KIYOYUKI SEGUCHI, Canon Institute for Global Studies
"Within domestic demand, if the problem of equipment investment of small and medium-sized enterprises can be solved, the Chinese economy of this year will remain on a relatively stable track."
The economist said win-win cooperation is inevitable in the context of economic globalization.