Sharjah24 - AFP: Japanese Prime Minister Shigeru Ishiba has described U.S. President Donald Trump’s newly imposed tariffs on Japanese imports as a "national crisis," emphasising the government's commitment to mitigating their impact.
The 24-percent levy, part of Trump’s global tariff strategy, has raised concerns in Japan, a major investor in the U.S. economy. Additional 25-percent tariffs on auto imports, which came into effect this week, have further exacerbated tensions.
Ishiba urged a measured approach to negotiations with Washington while directing ministers to analyze the tariffs and implement necessary measures, including financial support for affected industries and job protection. Government spokesman Yoshimasa Hayashi reiterated Japan’s concerns, stating that the tariffs are "extremely regrettable" and may violate World Trade Organization rules and existing U.S.-Japan trade agreements.
The economic fallout was immediate, with Japan’s Nikkei 225 index dropping over three percent on Friday, following a significant decline the previous day. The tariffs have also alarmed Japanese business leaders, with the Japan Chamber of Commerce and Industry (JCCI) warning of severe consequences for the national economy. JCCI has urged the government to negotiate exemptions and support small and medium-sized enterprises through enhanced financial assistance.
The Japan Automobile Manufacturers Association (JAMA) has also called for government intervention, highlighting that Japan's auto industry is a critical pillar of the economy. JAMA stressed the need for tax reforms and comprehensive support to sustain the domestic market and manufacturing base. Japanese automakers have invested over $66 billion in U.S. manufacturing, creating more than 110,000 direct jobs and supporting over 2.2 million others.
Japan exports approximately 1.49 million cars directly to the U.S., with an additional 1.45 million shipped from factories in Canada and Mexico. Domestically, the auto sector employs 5.6 million people and accounts for 28 percent of Japan’s $142 billion in U.S.-bound exports. As Japan braces for the economic impact, the government continues to seek a resolution through negotiations and policy adjustments.
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