In a robust response to the looming threat of increased tariffs on car imports by the United States, Japanese Prime Minister Shigeru Ishiba has vowed to implement comprehensive measures to safeguard the domestic employment landscape.
Ishiba warned the Japanese parliament of the considerable economic challenges posed by these tariffs, emphasizing the critical need for the government to comprehensively assess the potential fallout on Japan’s pivotal automotive industry.
The government must explore viable cash-flow strategies to shield Japanese companies and ensure that domestic industries and employment remain unaffected, Ichiba elaborated.
This fiscal safeguard announcement follows two consecutive days of Ishiba underscoring the urgency to address the trade tensions initiated by U.S. President Donald Trump.
Trump’s Auto tariffs are slated to come into effect on April 3 Washington time, targeting vehicle imports and expanding to include auto parts by May 3. Adding to the complexity, nations including Japan anticipate further reciprocal tariff declarations in the coming months.
Japan’s automotive sector is crucial to its economy, comprising over a third of the nation’s exports to its largest market, the U.S. The industry, with its extensive network of auto-related companies such as material suppliers, employs 5.58 million people, accounting for 8.3% of Japan’s total workforce, according to the Japan Automobile Manufacturers Association.
