Agency. Japanese Prime Minister Shigeru Ishiba said on Friday that US President Donald Trump’s decision to impose a 25 percent tariff on imported cars and parts was “difficult to understand.” The tax comes after weeks of friendly talks between Ishiba and Trump, but it comes as a major blow to Japan, one of Washington’s closest economic and strategic allies.
Shares of Japanese auto companies fell for a second day on Friday. What President Trump is saying is that there are friends and enemies, and friends can be tougher. “It’s very hard to understand,” Ishiba said during a legislative committee session.
America’s trading partners are taking our jobs, taking our assets, taking a lot of things,” Trump said at the White House, announcing the new auto tax. “They’ve taken a lot from our country, both friends and foes. In fact, friends have done worse.”
The move has raised concerns among U.S. allies. Canada has reacted sharply to Trump’s tariffs, which could destroy the country’s auto industry, with Prime Minister Mark Carney declaring the era of deep bilateral relations “over.”
The impact on the Japanese economy will be significant. The big fight over “There is no point in doing so. We will explain it to Washington logically,” Ishiba warned for Japan, adding that the main point is that there is no particular benefit to the United States from imposing such high tariffs on Japan. 10 percent of jobs in Japan are linked to the auto industry.
Prime Minister Ishiba said on Thursday that Japan was reviewing an “appropriate” response to the tariffs. “We believe that the current measures and other comprehensive trade restrictions by the US government could have a significant impact on economic relations between Japan and the United States, as well as on the global economy and the multilateral trading system,” government spokesman Yoshimasa Hayashi said.
Trump’s move has worried investors who are already unprotected by tariffs on steel and aluminum. Toyota fell 4.76 percent, Honda 4.77 percent and Nissan 2.97 percent in afternoon trading.
The declines followed Thursday’s sharp declines. Top trade officials from South Korea, Japan and China are set to meet in Seoul on Sunday to discuss economic cooperation, a government source said.
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