TOKYO. Japanese Prime Minister Shigeru Ishiba said on Friday that US President Donald Trump’s tariffs on Japanese goods have caused a ‘national crisis’.
Japanese companies are the largest investors in the United States, but President Trump has announced a hefty 24 percent tax on imports.
The US, Japan’s closest ally, will impose heavy tariffs on Japan as part of a global package of tariffs on Thursday, which will have a major impact on the Japanese economy.
“The move could cause Japan to face an economic ‘national crisis’, so the government is working with all parties to mitigate its impact,” Ishiba told parliament. .
He called for a “peace-led” approach to negotiations with the Trump administration. The US also imposed a 25% tariff on Japanese car imports that took effect this week.
Bank of Japan Governor Kazuo Ueda said the tariffs could add to downward pressure on the global and domestic economies.
Government spokesman Yoshimasa Hayashi said on Thursday he had instructed his ministers to “closely study” the tariffs and take all necessary measures, including financial support for domestic industry and job protection.
According to the Asahi Shimbun daily, Ishiba met with party leaders on Friday to lay the groundwork for a supplementary budget bill. His minority government needs opposition support to pass any bill in parliament. .
On Friday, Hayashi said Trump’s new tariffs were “extremely regrettable” and that Japan had “serious concerns” about whether they would comply with World Trade Organization rules and the US-Japan trade agreement.
The Japan Chamber of Commerce and Industry (JCCI) said Trump’s tax hikes would have a serious impact on the Japanese economy.
The JCCI said in a statement, “We urge the government to continue negotiations for tax relief and take all possible measures to mitigate the impact on small and medium-sized enterprises and small businesses by developing a comprehensive consultation system and strengthening cash management support.” We strongly urge.”
The Japan Automobile Manufacturers Association (JAMA) has also called for government support for its members, who are an important pillar of the world’s fourth-largest economy.
The industry has consistently called for fundamental reforms to simplify and reduce the tax burden on vehicles, and we kindly request comprehensive support measures to ensure that Japan’s automotive industry can maintain its foothold as a manufacturing base through the revival of the domestic market, he added.
According to JAMA, its members have invested more than $66 billion in US manufacturing by 2024. “We have long believed that becoming an integral part of the U.S. auto industry through local investment and job creation is the most sustainable path for both countries’ auto industries,” the statement said.
Japanese automakers ship about 1.45 million cars to the United States from Canada and Mexico, according to Bloomberg News.
Japan exports about 1.5 million cars directly to the United States, while Japanese automakers produce 3.3 million cars in the U.S. .
In Japan, the auto sector is a major industry, directly or indirectly employing about 5.6 million people.
Automobiles accounted for about 28 percent of Japan’s 21.3 trillion yen ($142 billion) in exports to the United States last year. RSS
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