1987
Crash, any similarity just pure coincidence 26/03/2018
April 1987,
President Reagan was trying to enforce some free and
fair trade on some Japanese-made computers, television sets and power
tools.
100% Tariff Put on Some Japan Goods
White House officials
said American consumers could substitute similar foreign and domestic
products to avoid higher prices. Retailers agreed that consumers
should feel little effect, the first major retaliation against Japan
in the postwar period, reflects the Administration's contention that
Tokyo failed to comply with a semiconductor agreement signed with
Washington last July.
Japanese officials
continued to argue that Japan was upholding the semiconductor
agreement, and called on Washington to withdraw the tariff. While
also sounding a conciliatory note, Tadashi Kuranari, Japan's Foreign
Minister, said, ''Japan finds it deeply regrettable that the United
States Government has put into effect unilateral measures against
Japan.
The American tariff
action covers products whose sales to the United States brought
Japanese manufacturers $300 million last year, which is a tiny
fraction of the $23 billion in electronic products that Japan
exported to the United States last year.
According to the White
House, Japan has failed to live up to an agreement, signed Sept. 2,
1986, in which the Japanese government promised to prevent below-cost
sales of Japanese produced semiconductors in third countries, and to
enhance access to the lucrative Japanese market for foreign-made
products.
However, in Tokyo, Hajime Tamura, minister of
international trade and industry, while condemning Reagan's decision,
declared that Japan will refrain from taking retaliatory action of
its own.
"Hoping to prevent this issue from causing
severe damage to the world's free-trading system, the Japanese
government has decided, from this broader perspective, not to take
any retaliatory measures immediately," Tamura said.
'Will Not Have Trade War'
"Japan and the United States are nations with
the highest level of friendly relations. Although we may exchange
words which sound like a trade war, however China and USA do not
share of the same empathy and action against each other could take
the Financial market further then a so called Black Monday.
Keep a eye on the
reaction from Chinese governmental in retaliation on Trumps tariffs,
this should tell us a direction the market will take.
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