Japan unveils subsidies to counteract US tariff fallout
Japan has announced a series of emergency economic measures to soften the impact of tariffs imposed by the US. These measures include subsidies for fuel and energy bills and an expansion of low-interest loans.
The Japanese government, led by Prime Minister Shigeru Ishiba, presented a plan on Friday to alleviate the negative effects of the tariffs imposed by US President Donald Trump. The package consists of five key elements, including support for business financing and initiatives to boost consumption.
Japan to subsidize fuel to curb tariff impact
As part of the government's actions, there is a plan to reduce gasoline and diesel prices by about 1 cent per litre. To achieve this, the government intends to partially subsidize 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 US to cooperate for mutual benefits.
Minister of Economic Revitalization Ryosei Akazawa has planned a trip to the US to meet with Secretary of the Treasury Scott Bessent. The goal of the visit is to negotiate exemptions or modifications to the tariffs, which Japan views as a threat to the stability of global trade.
Depending on the outcome of the discussions, the Ishiba administration may implement further measures to prevent a decline in productivity among Japanese manufacturers and a deterioration in consumer sentiment. The American tariffs on cars, steel, and aluminum, despite a 90-day delay, remain effective at a rate of 10%.
On April 2, US 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 postponed most tariffs for 90 days, escalating only the tariffs on China to the level of a trade war.
