Japanese Prime Minister Shigeru Ishiba announced a set of emergency economic measures on Friday aimed at mitigating the potential impact of new United States tariffs on Japanese industries and households.
The government’s response includes support for corporate financing, subsidies to reduce petrol prices by 10 yen ($0.07) per litre, and partial coverage of electricity bills for a three-month period starting in July, according to an official document.
At a meeting of the government’s tariff task force, Ishiba said cabinet members had been directed to take comprehensive actions to support businesses and households concerned about the effects of the tariffs. Industries such as automobiles and steel, which are central to Japan’s economy, could be particularly affected, he noted.
In addition to the announced measures, the government will broaden eligibility for low-interest loans from government-backed banks, targeting small and medium-sized enterprises considered more vulnerable to economic fluctuations. Officials also indicated that further initiatives to stimulate domestic consumption would be considered depending on the evolving impact on the automotive sector.
Economy Minister Ryosei Akazawa stated that the current package could be financed through a reserve fund, likely avoiding the need for an additional budget. Akazawa, who also serves as Japan’s top trade negotiator, is scheduled to travel to Washington next week for further trade discussions.
The measures come in response to new US tariffs introduced earlier this month. On April 2, US President Donald Trump announced a 25 percent tariff on car and truck imports, alongside a 24 percent tariff on all Japanese goods, later reduced to 10 percent for a temporary 90-day period.
Reports from the Nikkei business daily suggested that Japan is considering increased imports of US soybeans as part of the ongoing negotiations.
Financial markets have responded to the tariff developments with volatility. Despite broader concerns, Japan’s Nikkei index rose by 1.9 percent on Friday, following a third consecutive day of gains on Wall Street, amid speculation that the US Federal Reserve may adjust interest rates and that the US administration may moderate its trade stance.
Explore top supply chain logistics news at The Supply Chain Report. Interested in international trade? Visit ADAMftd.com for free tools.
#JapanEconomy #USTariffs #EconomicMeasures #TradeRelations #GlobalTradePolicy #JapanTradeResponse #TariffImpact
