Japanese Prime Minister Shigeru Ishiba has announced emergency economic measures to alleviate any impact on industries and households affected by the United States’s new tariffs on products from Japan.
The package unveiled by Ishiba on Friday includes support for corporate financing as well as subsidies to lower petrol prices by 10 yen ($0.07) a litre (0.26 gallons), and partially cover electricity bills for three months from July, a government document showed.
“I have instructed cabinet members to make the utmost efforts to aid firms and households that have been worried about tariff impact,” Ishiba said at a tariff task force meeting.
US tariffs could have a significant impact on Japanese industries that support the economy such as automobiles and steel, he said.
To help small and mid-sized companies more vulnerable to economic swings, a larger scope of firms will be eligible for low-interest loans extended by government-backed banks.
The government will also consider additional measures to boost domestic consumption depending on the impact of US tariffs on Japan’s massive automotive industry.
Friday’s package could be financed by a reserve fund, eliminating the need to compile an extra budget, said economy minister Ryosei Akazawa.
Steep US tariffs
US President Donald Trump on April 2 introduced a 25 percent tariff on car and truck imports. He also announced a 24 percent tariff on all Japanese goods, later cutting that to 10 percent for 90 days.
Akazawa, who serves as Japan‘s top trade negotiator, will visit Washington next week for a second round of trade talks.
On Thursday, the Nikkei business daily reported that Japan is considering increasing soya bean imports from the US as part of negotiations.
The uncertainty in Trump’s imposition of tariffs has weighed down on markets around the world, including in Japan.
But Tokyo’s Nikkei surged 1.9 percent on Friday after Wall Street’s rally streaks for the third day, driven by hopes for the Fed to cut rates and hopes that Trump was softening his approach on tariffs.
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