Japan vows to take decisive action as the U.S. imposes a 25% tariff on automobile imports. With autos making up 28.3% of Japan’s exports to the U.S., the move could hit its economy hard. Prime Minister Shigeru Ishiba says Tokyo is considering "all options" in response.
Japanese Prime Minister Shigeru Ishiba said on Thursday Tokyo will put "all options on the table" in dealing with Washington's announcement to impose a 25% tariff on automobile imports.
U.S. President Donald Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks starting next week, widening the global trade war he kicked off upon regaining the White House this year.
"Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries. That is a point we've been making and will continue to do so," Ishiba told parliament.
"We need to consider what's best for Japan's national interest. We're putting all options on the table in considering the most effective response," Ishiba said, without elaborating on the possible steps Tokyo may take.
Analysts say the move could deal a heavy blow on Japan's economy given its reliance on auto exports to the United States.
Shares in Japanese auto makers fell sharply in early trade on Thursday.
Automobiles made up 28.3% of Japan's total exports to the United States in 2024, the biggest ratio among all items, according to Ministry of Finance data.
The auto industry makes up roughly 3% of Japan's gross domestic product (GDP) and has been the driver of recent wage hikes, as automakers distribute the huge profits they reaped overseas to their employees.
Takahide Kiuchi, executive economist at Nomura Research Institute (NRI), expects an 25% increase in U.S. auto tariffs to push down Japan's GDP by around 0.2%.
"The Trump tariff has the potential to immediately push Japan's economy into deterioration," he said.
U.S. and Iranian officials said they had agreed on a framework to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, a pre...
The UK has become the latest country to annouce a social media ban for children under 16. British Prime Minister Keir Starmer made the announcement on...
An armed unmanned aerial vehicle crashed on a Black Sea beach in northern Türkiye on Sunday, prompting a security operation and the controlled detona...
Spain has received around 900,000 applications from undocumented migrants seeking legal status under a government regularisation programme. The influx...
A Ukrainian man has been found guilty of carrying out a series of arson attacks on properties linked to British Prime Minister Keir Starmer after bein...
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
U.S. and Iranian officials said they had agreed on a framework to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Iran's nuclear program to further negotiations.
Switzerland on Sunday rejected a referendum proposal to cap its population at 10 million, a projection showed, as voters prioritised economic stability and the country's ties with the European Union over immigration concerns.
Spain has received around 900,000 applications from undocumented migrants seeking legal status under a government regularisation programme. The influx has far exceeded initial expectations, the Migration Ministry said on Monday.
A Ukrainian man has been found guilty of carrying out a series of arson attacks on properties linked to British Prime Minister Keir Starmer after being recruited by a mystery figure known only as "EL Money".
British lawmakers look set to revisit assisted dying in the new parliamentary session after Labour MP Lauren Edwards said she would reintroduce legislation that failed to complete its passage through Parliament earlier this year.
Israel expects to secure new contracts for its air and missile defence systems from European countries within weeks, as governments across the continent continue to strengthen their militaries amid security concerns linked to Russia's war in Ukraine.
U.S. President Donald Trump has threatened to impose 100% tariffs on French wine and champagne unless France removes its digital services tax on major American technology companies.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment