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 are the potential effects of a trade agreement between Japan and the US on the Japanese economy?

How might higher auto tariffs from the US impact Japan's manufacturing sector?

In what ways could the non-manufacturing sector in Japan help offset weaknesses in the manufacturing sector?

What are the anticipated effects of the upcoming sales tax hike on household demand in Japan?

What was the trade balance for Japan in August, and how did it compare to expectations?