US tariffs on Japanese goods to be cut by Sept 16, Japan's Akazawa says on X
1. U.S. tariffs on Japanese goods will be lowered by September 16. 2. This change could enhance Japan's export competitiveness, impacting EWJ.
FAQ
Why Bullish?
Lower tariffs can lead to increased exports from Japan, positively affecting EWJ. Historical examples show that tariff reductions, such as in the U.S.-Mexico-Canada Agreement, tended to improve stock performance in affected industries.
How important is it?
Tariff changes directly influence the competitiveness of Japanese exports. This shift may result in increased investor interest in EWJ as Japanese companies may become more profitable, reflecting well on their stock performance.
Why Short Term?
The tariff reduction will likely impact market sentiment quickly, affecting stock prices shortly after implementation. Similar events in the past have shown immediate market reactions within weeks of tariff changes.