– What happened in Japan in late 1980s that NIKKEI has still not recovered from the fall?

Question

– What happened in Japan in late 1980s that NIKKEI has still not recovered from the fall?

In: 4

Answer 1

The Reagan Administration imposed a 100% tariff on Japanese imports in 1987. The Japanese were accused to “dumping” goods on the U.S. economy (which they definitely were) to the point of impacting U.S. domestic goods production and exports. Soon after, a trade agreement was made between Japan and the U.S. which effectively prevented Japan from dumping goods on the U.S., but this also had the effect of significantly shrinking the Japanese economy.