Japan US Tariffs Response: 1000 Business Consultation Centers & Exemption Push
1st April 2025, Kathmandu
Japanese Prime Minister Shigeru Ishiba announced on Tuesday the establishment of nearly 1,000 consultation centers to assist businesses affected by U.S. tariffs. He also pledged continuous efforts to secure tax exemptions for Japanese companies.
Japan US Tariffs Response
Japan is one of the closest economic and strategic allies of the United States. Japanese companies are among the largest investors in the U.S., with nearly 10% of Japan’s workforce engaged in the automobile industry. However, former U.S. President Donald Trump had warned that all trade partners would be impacted by new tariffs, set to be announced on April 3. He had also proposed a 25% tariff on all imported automobiles that were not manufactured in the U.S.
While Ishiba did not comment on imposing retaliatory tariffs on U.S. imports, he stated that his ruling coalition would discuss countermeasures in detail. In the meantime, the 1,000 consultation desks will guide affected businesses. Additionally, he assured that the government would assist small and medium-sized enterprises (SMEs) in securing financial support if U.S. tariffs become effective.
“Japan is the largest investor in the U.S. Keeping that in mind, we will strongly advocate for tariff exemptions for Japanese businesses,” Ishiba stated at a press conference. He added, “If necessary, I am willing to visit the United States personally to negotiate.”
On Friday, following Trump’s announcement of the 25% tariff on cars and auto parts, Ishiba had expressed confusion over U.S. trade policies.
“President Trump has stated that there are friends and foes in global trade, and sometimes friends are harder to deal with. This is quite difficult to understand,” Ishiba remarked during a parliamentary committee meeting in Tokyo.
Impact on Japan’s Trade and Economy
Japan’s automotive sector is expected to be one of the most heavily impacted by the proposed tariffs. As one of the leading global automobile producers, Japan relies on exporting vehicles to the U.S. Any additional tariffs would significantly increase costs and impact profitability.
Meanwhile, the Japanese government is actively exploring options to mitigate risks. Discussions are ongoing regarding alternative trade agreements and negotiations with the U.S. to minimize the economic impact on Japanese industries.
For now, Japan’s strategic approach includes diplomatic negotiations and financial assistance for affected companies. However, whether these efforts will influence U.S. policy remains uncertain.
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