Study: US auto industry would suffer if Japan enters trade deal
A new study conducted by the Center for Automotive Research has determined that a new U.S. free trade agreement with Japan could have a negative impact on the U.S. auto industry. The study, which was released on Tuesday, found that the trade agreement could result in a total loss of over 26,500 American jobs. This figure is comprised of 2,600 direct U.S. automotive manufacturing jobs, 9,000 U.S. supplier jobs, and a 14,900 loss of spin-off jobs. Furthermore, U.S. vehicle production would decrease by 65,100 units, according to the study.
While U.S. employment will take a hit, the Japanese economy will thrive as a result of the proposed partnership. In fact, Japanese vehicle imports to America would jump by 105,000 units (6.2 percent), which is roughly equal to $2.2 billion. This increase would occur because the new free trade agreement would eliminate the 2.5 percent tariff on cars that Japan currently pays to export their cars to the U.S.