Impact of Global Trade Tensions on the Japanese Economy – Beyond Trade Spillover
Rising protectionism continues to threaten multilateralism and economic integration globally. As a key player in global trade, Japan has been feeling the impact of economic headwinds emanating from the escalation of the on-going U.S.-China trade tensions, particularly as it is entering into trade talks with the U.S. Although short-term downside risks are rising for Japan, its economy could benefit in the long run from a changing global production network as it is nimble and experienced in coping with global trade reconfigurations.