Japan to make strong push for exemption from US auto tariffs
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Japan may take a severe hit from US tariffs of up to 25 per cent on auto imports.
PHOTO: REUTERS
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TOKYO – Japan will keep up a strong push for the US to exempt it from auto tariffs, Prime Minister Shigeru Ishiba said on April 1, while vowing to take the necessary steps to cushion the blow to the economy and jobs.
The export-reliant economy could take a severe hit from a planned tariff of 25 per cent on automobile imports unveiled last week by US President Donald Trump, who also promised to announce on April 2 reciprocal tariffs targeting every nation.
Measures such as offers of funding support for cash-strapped firms are among those the government could take to protect the economy from the higher tariffs, Mr Ishiba said during a news conference.
“The government will negotiate with the ruling coalition at an early date specific measures we can take to respond,” he said, in case Japan is slapped with higher levies.
Government agencies are negotiating with their US counterparts to secure more details on Washington’s tariff plans, he said.
The Japanese Prime Minister added that he “would not hesitate” to visit the US again to make a direct call for exemptions.
Mr Ishiba, grappling with sliding approval ratings ahead of an Upper House election expected in July, is also under pressure to counter economic headwinds from US tariffs and protect households from rising living costs.
Japan’s headline inflation of 3.7 per cent in February was among the highest in advanced economies, fuelled largely by steady rises in food costs, including those of staple rice.
While big firms have offered bumper pay hikes in wage talks with unions in 2025, it is uncertain if smaller peers will follow suit, as Mr Trump’s tariff threats cloud the business outlook.
Mr Ishiba said the government would compile measures by May to push up Japan’s minimum wage, and a separate package by June to allow smaller firms to smoothly pass on rising costs.
“Achieving wage hikes is at the core of our growth strategy,” he said, stressing the need for pay hikes sufficient to compensate for the rising cost of living. REUTERS
