Sales Tax Hike Impact Likely to Be Smaller This Time, Says Continuum Economics’s Lu

The transcript discusses a potential trade agreement between the US and Japan, focusing on agriculture, industrial tariffs, and digital trade. It highlights concerns over US auto tariffs affecting Japan's manufacturing sector and the potential relief a trade deal could bring. The resilience of Japan's non-manufacturing sector is considered, though household demand may be impacted by a sales tax hike. The August trade numbers show a smaller-than-expected deficit, with exports contracting less than anticipated. Overall, trade tensions continue to challenge Japan's economy.

What is a major concern for Japan in the potential trade agreement with the US?

• Expansion of industrial tariffs

• Lower agricultural tariffs for Japan

• Increased digital trade

• Higher auto tariffs from the US

How might the non-manufacturing sector in Japan respond to the current trade tensions?

• It shows some resilience

• It is expected to collapse

• It will face the same challenges as manufacturing

• It will completely offset manufacturing weaknesses

What is the expected impact of the upcoming sales tax hike on Japan's domestic demand?

• It will have no impact

• It will significantly boost demand

• It will lead to a demand surge

• It may dampen demand

How did Japan's trade numbers for August compare to expectations?

• They were better than expected

• They were not released

• They were worse than expected

• They matched expectations

What is the outlook for Japan's export conditions in the coming months?

• They are expected to improve significantly

• They will not be affected by trade tensions

• They will stabilize

• They will remain challenging