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Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Subaru BRZ tS makes its brief video debut

Ever since Subaru released the BRZ, fans have been eagerly anticipating the arrival of the STI version. But despite the recent release of the tS package, the brand faithful will have to wait a little longer, because the tS stops short of the full STI treatment. But at least it looks the part.
Though the BRZ tS doesn't encompass any major engine mods to speak of, it does benefit from a number of enhancements: a new driveshaft, aero kit, Brembo brakes, Recaro buckets and more. Which may be more than enough for some, but to tip the scales of disappointment, Subaru will only make 500 such examples, and they'll only be available in Japan. So chances are you won't be getting your hands on one, but at least you can admire it from this brief video clip below. It's not much to go on, but that seems about par for the proverbial course.

2015 Subaru Outback

Realistically, many enthusiasts give horrible, horrible car buying advice. They will recommend something bizarre, inappropriately high performance, compromised or utterly impractical for a given consumer's needs, and they'll almost never recommend something that makes sense. And then they'll come up with 3.7 million reasons why the leading vehicle someone is thinking about is a bad choice.
Or maybe that's just what I do.
Regardless, if you poke, prod, bother or just get us drunk enough, eventually you'll begin getting honest feedback. And more than likely, we'll tell you, in hushed tones, about the many virtues of very, very boring cars. We'll talk about why the Toyota Camry is actually a pretty decent purchase or we'll explain how spacious and feature laden the Nissan Versa is.