The political world in this country appears to be somewhat chaotic right now. Between the immigration issues and the trade wars, in fact, it can often seem confusing. In spite of this confusion, however, there is a topic that seems to be important to everyone on both sides of the aisle: exports and imports. From the food that we serve to our families, to the clothes that we wear, to the cars that we drive, people around the world are anxious to find out how the latest trade negotiations will impact the prices that are paid. For example, a significant change in the import taxes for imported engines from Japan can have a significant impact. Although many people may simply think about the vehicles that they drive when the topic of imported engines from Japan is discussed, the reality is that these Japanese engines are also used in boats, tractors, planes, and lawn mowers.
By focusing on a single product from a single country, it is easier to understand that an increase in import taxes can affect a number of products throughout a number of industries. Extended a little further, a look at import tax increases on both new and used Japanese engines and transmissions shows an even broader impact.
Americans Rely on Products Imported from Countries Across the Globe
No surprise, it is always important to make sure that there are fair import and export taxes if we are going to continue to be able to live the kind of lives that we have become accustomed to. Again, focusing on one country, it is important to understand the economic impact of the goods that are brought into our country. As an example, U.S. goods imports in 2016 from Japan totaled $132.2 billion. In fact, Japan was the U.S.’s fourth largest supplier of imports in 2016.
Consider these facts and figures about other import facts as they are exemplified in just the country of Japan:
- Japan’s Toyota topped the list of the world’s most valuable car brands with an estimated value of just under $30 billion in the year 2016.
- The biggest import category from Japan to the U.S. in 2016 was vehicles, amounting to $50 billion.
- The second biggest import category from Japan to the U.S. in 2016 was machinery, amounting to $29 billion.
- The third biggest import category from Japan to the U.S. in 2016 was electrical machinery, amounting to $16 billion.
- 7.83 million passenger vehicles are produced in Japan each year.
Any increase in the cost of imported engines from Japan will affect a number of industries, which, in turn, affects many industries.