As the impact of U.S. tariffs begins to ripple through the Japanese economy, Prime Minister Shigeru Ishiba has pledged to push back against the levies while rolling out emergency support for affected industries — but warned local businesses that relief may take time.
Speaking before parliament on Monday, Ishiba said Tokyo will continue urging U.S. President Donald Trump to reconsider his decision to impose sweeping tariffs on Japanese imports, including a 25% duty on automobiles and a 24% tariff on other goods.
“We will ask the United States to reverse these measures,” Ishiba told lawmakers. “But this won’t be resolved overnight. In the meantime, the government must act swiftly to protect jobs and stabilize our local economy.”
The announcement follows a steep 9% plunge in the Nikkei 225 index early Monday, driven by fears of a global recession. Economic analysts have warned that the new tariffs could shave nearly 0.8% off Japan’s GDP, with major exporters and local manufacturers likely to feel the pressure first.
Ishiba, who returned Sunday night from a late meeting with his top economic team, has instructed ministers to explore funding assistance for affected companies, particularly small and mid-sized businesses in Tokyo, Nagoya, Osaka, and other industrial hubs.
“We will not stand by and watch our communities suffer,” Ishiba said. “Our response will include targeted financial aid, workforce protections, and emergency trade measures where necessary.”
Residents in auto-producing regions such as Aichi Prefecture and Tochigi have expressed concern over potential job cuts and production slowdowns. Local government officials are expected to coordinate with national ministries to assess the impact and prepare assistance packages.
The Prime Minister also left the door open for a face-to-face meeting with President Trump in Washington, hinting that Tokyo may offer a cooperative economic package to restart talks.
“But any negotiation must be grounded in fairness and mutual respect,” Ishiba added. “Japan has done nothing to warrant such punitive trade actions.”
With tensions rising and markets jittery, local businesses and consumers alike are bracing for potential price increases and reduced exports. The national government is expected to announce initial relief measures later this week.