Japan warns of economic harm from Trump's car import tariffs
— I recognize that the impact that this will have on the economy will be very big, — said the country's Prime Minister Shigeru Ishiba on Friday. Exports are a major driver of Japan's economic growth.
— We will take all possible measures so that this won’t affect domestic industries or employment, — said Ishiba during a parliamentary session. The Prime Minister also expressed readiness to continue negotiations with Washington.
On Wednesday, Trump announced that the United States will impose a 25 percent tariff on cars, trucks, and parts imported from other countries. Washington wants to push companies to relocate production to the USA.
However, as noted by the Nikkei Asia (NA) portal, Japanese car manufacturers have already been doing what Trump is advocating for decades. According to NA, there are 24 production facilities in the USA.
At a press conference following the government's session on Friday, Finance Minister Katsunobu Kato called Trump's decisions "extremely regrettable," adding that Japan has "strongly urged the US government to exclude Japan from the scope of this measure." The Ministry of Finance plans to examine the impact of these tariffs on the nation's economy and "take appropriate measures."
Bank of Japan concerned: Tariffs could hurt the economy
Members of the Bank of Japan's board also expressed concern about the negative impact of tariffs on the country's economy, writes the Kyodo agency. The central bank "will need to be particularly cautious when considering the timing for raising the policy interest rate," as the tariffs introduced by U.S. President Donald Trump could harm the Japanese economy, said one official.
Cars accounted for a little over 28 percent of Japan's total exports to the USA last year, reaching a value of almost $40 billion, according to government data.
