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Japan braces for blow from Trump’s car tariffs as Ishiba weighs countermeasures

Prime Minister Shigeru Ishiba said Tokyo will consider the ‘most effective response’ to US levies on car imports

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Automobiles made up 28.3 per cent of Japan’s total exports to the US in 2024. Photo: Reuters
Reuters
Japanese Prime Minister Shigeru Ishiba said on Thursday Tokyo will put “all options on the table” in dealing with Washington’s announcement to impose a 25 per cent tariff on automobile imports.
US President Donald Trump on Wednesday unveiled a 25 per cent tariff on imported cars and light trucks starting next week, widening the global trade war he kicked off upon regaining the White House this year.

“Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for [Washington] to apply uniform tariffs to all countries. That is a point we’ve been making and will continue to do so,” Ishiba told parliament.

“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response,” Ishiba said, without elaborating on the possible steps Tokyo may take.

Analysts said the move could deal a heavy blow on Japan’s economy given its reliance on auto exports to the US.

“We believe that the current measures and other broad-based trade restrictions by the US government could have a significant impact on the economic relationship between Japan and the US, as well as on the global economy and the multilateral trading system,” government spokesman Yoshimasa Hayashi told reporters.

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