Japan unveils economic package to counter US tariffs
Japan has announced a package of extraordinary economic measures to mitigate the effects of tariffs imposed by the US. Among these 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 measures on Friday aimed at alleviating the adverse effects of tariffs imposed by US President Donald Trump. The package includes five pillars, including support for corporate financing and steps to boost consumption.
Japan to subsidise fuel prices to counter tariff impact
As part of the government measures, there is a plan to reduce petrol and diesel prices by approximately 8.4 pence per litre. To achieve this, the government plans partial subsidies for fuel and energy bills. Prime Minister Ishiba emphasised that the tariffs could "significantly harm domestic industries, especially the automotive and steel sectors." He added that it is essential for Japan and the US to work together for mutual benefits.
The Minister for Economic Revitalisation, Ryosei Akazawa, plans to visit the US to talk with Treasury Secretary Scott Bessent. The visit aims to secure exemptions or changes to the tariffs that Japan considers a threat to global trade stability.
Depending on the results of the talks, Ishiba's government may introduce additional measures to prevent a decline in Japanese manufacturers' productivity and a deterioration in consumer sentiment. The US tariffs on cars, steel, and aluminium, despite a 90-day deferral, remain at 10 per cent.
On 2 April, US President Donald Trump imposed a 25 per cent tariff on the import of cars and trucks and subsequently announced a 24 per cent tariff on all Japanese goods. A week later, he deferred most of the tariffs for 90 days, only escalating tariffs on China to the level of a trade war.
