Japan has raised the issue of auto tariffs with the US after President Donald Trump threatened to impose a 25% levy on car imports, a move that likely would deliver a big blow to Japan’s economy.
Tokyo is closely watching any potential impact stemming from higher levies, which the president said might officially be unveiled as soon as April 2. Economists estimate the impact would be substantial given that cars make up the largest component of Japan’s exports, with the US as the No. 1 market.
“We have been raising the issue with the US government, given the importance of Japan’s automobile industry,” Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said at a press conference on Wednesday. “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 remarks come after Foreign Minister Takeshi Iwaya raised the issue with his counterpart Marco Rubio last week, when Tokyo also asked for exclusion from Trump’s reciprocal tariffs. The Asian nation is also seeking exclusion from his fresh tariffs on steel and aluminum.
It’s not clear if Japan is also seeking an exemption from the auto tariffs as Trade Minister Yoji Muto didn’t respond directly on Tuesday when asked about it.
The impact from tariffs will be much bigger for Japan’s auto sector compared to other industries, and there is a good chance that Japanese cars will be targeted given Japan is among the top car exporters to the US, according to analyst estimates.
This article was generated from an automated news agency feed without modifications to text.