Japan Dubs U.S. Tariff Measures a “National Crisis” (Prime Minister)
The 24% tariffs imposed by Washington on Japanese goods represent a “national crisis” for Japan, a country that heavily relies on exports to the United States, stated Prime Minister Shigeru Ishiba on Friday.
These tariffs, announced by U.S. President Donald Trump, “can be characterized as a national crisis, and the government is committed to addressing this issue with all relevant parties,” Ishiba remarked in the Japanese Parliament. He underscored the importance of engaging in negotiations with the American administration “with a cool head.”
Additionally, Ishiba instructed his ministers on Thursday to “carefully assess” the tariffs and to implement all necessary measures, including financial support, to safeguard affected industries and jobs, as reported by government spokesperson Yoshimasa Hayashi.
While Japan is the largest source of foreign direct investment in the United States, Tokyo has been unsuccessful in securing any exemptions from the tariffs imposed by the Trump administration. Last year, the U.S. accounted for 20% of Japanese exports.
The automotive sector, which has faced a 25% tariff since Thursday, constituted 28% of Japan’s exports to the U.S., amounting to $40 billion. Moreover, two-thirds of Japan’s remaining exports to the U.S. will encounter an additional 24% tariff beginning next week.
The Japanese economy is significantly dependent on foreign trade, which helped it avoid a contraction in GDP during the last quarter of 2024.
“It is crucial for all political parties, including those in opposition, to collaboratively study and adopt measures. Therefore, Prime Minister Ishiba will meet with each party leader later on Friday to gather their insights,” Hayashi noted.
These discussions between Ishiba and leaders of other parties aim to facilitate the approval of a supplementary budget bill in Parliament, which may encompass supportive measures for businesses impacted by the tariffs, according to the Asahi Shimbun.
Given that Shigeru Ishiba’s government lacks an absolute majority in the lower house of Parliament, it requires support from opposition parties to pass this legislation.
Hayashi reiterated on Friday that the new tariffs imposed by the Trump administration were “extremely regrettable” and expressed Tokyo’s “serious concern” regarding their compliance with World Trade Organization (WTO) rules and the U.S.-Japan bilateral trade agreement.
Tokyo continues to “strongly demand” that Washington reconsider its trade policy. Reflecting investor apprehensions about the economic ramifications of the trade war, the Tokyo Stock Exchange experienced accelerated losses, plummeting over 3% by midday on Friday.
