Japan unveils aid plan to counter U.S. tariff effects
Japan has announced a package of emergency economic measures to mitigate the effects of tariffs imposed by the U.S. Among these measures are subsidies for fuel and energy bills, as well as the expansion of low-interest loans.
The Japanese government, led by Prime Minister Shigeru Ishiba, presented a set of actions on Friday aimed at alleviating the negative impacts of tariffs imposed by U.S. President Donald Trump. The package includes five key components, such as support for business financing and steps to stimulate consumption.
Japan to subsidize fuel to curb tariff impact
As part of the government's actions, there's a plan to reduce gasoline and diesel fuel prices by 4 cents per gallon. To achieve this, the government intends to provide partial subsidies for fuel and energy bills. Prime Minister Ishiba emphasized that the tariffs could significantly harm domestic industries, especially the automotive and steel sectors. He added that it is crucial for Japan and the U.S. to cooperate for mutual benefits.
Minister of Economic Revitalization Ryosei Akazawa is planning a visit to the U.S. to meet with Secretary of the Treasury Scott Bessent. The purpose of the visit is to negotiate exemptions or modifications to the imposed tariffs, which Japan views as a threat to the stability of global trade.
Depending on the outcome of these talks, the Ishiba government may implement additional measures to prevent a decline in productivity of Japanese manufacturers and a deterioration in consumer sentiment. The American tariffs on cars, steel, and aluminum, despite a 90-day delay, remain in effect at a rate of 10%.
On April 2, U.S. President Donald Trump introduced a 25% tariff on the import of cars and trucks, followed by a 24% tariff on all Japanese goods. A week later, he deferred most tariffs for 90 days, exacerbating the situation with China into a trade war.
