Japan unveils economic measures to counter US tariffs
Japan announced a package of emergency economic measures to mitigate the effects of tariffs imposed by the US. Among these measures 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 actions on Friday aimed at alleviating the negative impacts of tariffs imposed by US President Donald Trump. The package includes five pillars, such as support for business financing and steps to stimulate consumption.
Japan to subsidise fuel to curb tariff impact
As part of government actions, there are plans to reduce petrol and diesel fuel prices by approximately 1 penny 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 important for Japan and the US to cooperate for mutual benefits.
Minister of Economic Revitalisation Ryosei Akazawa has planned a visit to the US to talk with Secretary of the Treasury Scott Bessent. The purpose of the visit is to obtain exemptions or changes to the imposed tariffs, which Japan sees as a threat to the stability of global trade.
Depending on the outcome of the talks, the Ishiba government may implement additional measures to prevent a decline in productivity among Japanese manufacturers and deterioration of consumer sentiment. The American tariffs on cars, steel, and aluminium, despite a 90-day delay, remain in effect at a rate of 10%.
On 2nd April, US President Donald Trump introduced a 25% tariff on the import of cars and trucks, and then announced 24% tariffs on all Japanese goods. A week later, he deferred most tariffs for 90 days, escalating only tariffs on China to the level of a trade war.
