Following President Donald Trump’s warning to slap a 25% levy on auto imports—a move that would probably deal a serious blow to Japan’s economy—Japan has brought up the subject of auto tariffs with the US.
President Donald Trump’s warning to slap a 25% levy on auto imports. This is a move that would probably deal a serious blow to Japan’s economy. Japan has brought up the subject of auto tariffs with the US.
The president stated that additional duties might be formally announced as early as April 2, and Tokyo is actively monitoring any possible effects. Given that automobiles account for the majority of Japan’s exports, with the US being the top market, economists predict the impact would be significant.
Japan’s Chief Cabinet Secretary Yoshimasa Hayashi stated at a press conference on Wednesday.
“We have been raising the issue with the US government, given the importance of Japan’s automobile industry,” “Japan will first carefully examine the specific details of the measures that will come out and their impact on Japan, and then respond appropriately.”
Hayashi’s comments follow Tokyo’s request to be exempt from Trump’s reciprocal tariffs last week when Foreign Minister Takeshi Iwaya brought up the matter with his counterpart Marco Rubio. The Asian country requesting that its new steel and aluminum tariffs be waived.
When asked about it on Tuesday, Trade Minister Yoji Muto did not directly answer. Thus it is unclear if Japan is also requesting an exemption from the vehicle duties.
According to analyst estimates, Japan is one of the top automobile exporters to the US. Hence the impact of tariffs on the auto industry will be considerably greater than on other industries. Additionally, there is a significant likelihood that Japanese cars will be targeted.
