US Tariffs: Japan Intensifies Efforts For Exemption

Japanese Prime Minister Shigeru Ishiba reaffirmed on Tuesday that Japan will strongly advocate for an exemption from the U.S. auto tariffs. He assured that necessary measures would be implemented to protect the economy and safeguard jobs.

Japan Faces Economic Risk from U.S. Tariffs

Japan could experience a significant economic impact from the proposed 25% tariff on automobile imports, recently announced by U.S. President Donald Trump. The tariff policy, set to be formally disclosed on Wednesday, includes reciprocal duties on multiple countries.

To mitigate these potential challenges, Ishiba emphasized that the Japanese government is considering financial aid for businesses facing liquidity constraints. “We will engage in discussions with the ruling coalition soon to determine specific countermeasures,” he stated, stressing that Japan is prepared to respond effectively if subjected to higher levies.

Negotiations with the United States Ongoing

Japanese officials are in active discussions with their U.S. counterparts to gain deeper insights into Washington’s trade policies. Ishiba also indicated his readiness to visit the United States personally to lobby for an exemption.

With an upcoming upper house election in July and declining approval ratings, Ishiba faces mounting pressure to shield the Japanese economy from the adverse effects of the tariffs. The tariffs pose a threat to economic stability, potentially driving up living costs for households.

Rising Inflation and Wage Adjustments in Japan

Japan’s inflation rate reached 3.7% in February—one of the highest among advanced economies—primarily due to the rising costs of essential goods such as rice. While major corporations have committed to substantial wage increases during negotiations with labor unions, uncertainty remains about whether smaller enterprises will follow suit amid ongoing trade uncertainties.

The Japanese government is set to introduce policy measures by May aimed at increasing the national minimum wage. Additionally, by June, authorities plan to unveil a strategy enabling small businesses to adjust to escalating costs smoothly.

“Boosting wages remains a crucial part of our economic growth strategy,” Ishiba affirmed, reinforcing Japan’s commitment to supporting both businesses and workers.