US auto tariff to put the brakes on Japan's economy

US President Donald Trump’s tariff measures are set to weigh heavily on the Japanese economy, raising concern over the long-term impact.

Japan’s biggest worry is the 25-percent additional tariff on automobiles. Since April, a total 27.5 percent tariff, which includes the conventional levy, has targeted Japanese automobile exports to the United States.

Last month, the country’s automakers released their earnings estimates for the current business year. But Mazda, Subaru and Nissan said they remain “undetermined.”

A Nomura Research Institute analyst says Trump’s tariffs are likely to drag down Japan’s annual GDP by a total of 0.47 percent.