On the morning of April 8, Japanese Prime Minister Shigeru Ishiba convened the first meeting of the headquarters for comprehensive countermeasures composed of all cabinet members to discuss how to deal with the U.S. government’s high tariff policy. He told the conference he“Deeply regretted” the US tariffs and said he would“Use the full power of the government”. Finance Minister Katsunobu Kato told reporters the government would set up response agencies at the Ministry of Finance and the Financial Services Agency. The US government’s imposition of a 25% auto tariff and a 24% “Reciprocal tariff” on Japanese products are expected to hit Japan’s export-oriented economy hard, Reuters reported on the 7th, citing analysts’ forecasts, higher tariffs could shave 0.8 per cent off Japan’s growth rate. “Japan Times” reported on the 7th that, so far, the lack of a strong response from Japan, the parties are increasing political pressure on prime minister Shigeru Ishiba to take a tougher stance against the United States.
On the 8th, the Japanese government held the first meeting of the headquarters of the comprehensive countermeasures composed of all cabinet members.
Japanese Prime Minister twice mentions ‘National Tragedy’
Ishiba NHK a 25-minute phone conversation with US President Donald Trump that night, according to the website NHK Friday. Ishiba highlighted“The fact that Japan has been the world’s largest investor in the US for five years in a row” and said that“Japanese companies’ investment margin will diminish due to us tariff measures”. In addition, he said, “We should explore ways to facilitate long-term cooperation between Japan and the United States.”. The two sides decided to appoint ministerial-level officials to continue negotiations, the report said. Shigeru Ishiba is negotiating with the US over the appointment of Morizawa as Minister of economic regeneration, the Yomiuri Shimbun reported Sunday. Donald Trump appointed his finance minister, Vicente Bessante, to lead the negotiations.
However, Donald Trump repeated his displeasure with us trade after speaking to Ishiba by phone. After the phone call with Ishiba, Donald Trump posted a message on social media criticising the country’s“Very bad treatment of the US on trade issues”, the Sankei Shimbun reported. Donald Trump also pointed to trade imbalances, saying“[ the Japanese ] don’t accept our cars, but we accept their zero cars, as well as agriculture and many other things”
Since April 2nd America’s government announced the introduction of“Reciprocal tariffs”, there has been a lot of unease in Japan. According to a report by the Sankei Shimbun on the 4th, on the same day, Shigeru Ishiba told a cabinet committee of the House of Representatives in response to questions about the US government’s announcement of“Reciprocal tariffs” that, “This is a state of affairs that should be called a ‘national tragedy’ . It is necessary not only for the ruling party, but also for all opposition parties to study and respond to it in a cross-party way.” “If necessary, I hope to visit the United States as soon as possible,” Shigeru Ishiba told the Senate Accounts Committee on April 7, citing the“National tragedy.”
How much impact on the Japanese economy
After the implementation of American“Reciprocal Tariff” policy, the influence on Japanese economy is the focus of Japanese public opinion. According to the NHK website, the US tariffs have a huge impact on Japan because it is its biggest export partner. Some private sector estimates put the impact of the auto tariffs at about 0.2 per cent of GDP. With real GDP growth of 0.1 per cent last year, some believe the impact of auto tariffs will be enough to wipe out a year’s economic growth. The imposition of“Reciprocal tariffs” is expected to have a bigger impact on the Japanese economy.
Real Ministry of Health, Labour and Welfare wages fell for the second month in a row in February on rising inflation, data showed on Monday, Reuters reported, concerns about the impact of US tariffs are rising across Japan. Inflation-adjusted real wages, a barometer of consumer purchasing power, fell 1.2 percent in February from a year earlier, the report said, the Consumer price index used to calculate real wages, which includes the cost of fresh food but excludes rent, was up 4.3 per cent year on year.
The Bank of Japan was also reported as saying uncertainty about the Japanese economy was growing as some businesses worried about the impact of US tariffs on profits. This suggests that large-scale us tariffs could derail Japan’s recovery. At their quarterly meeting on Monday, one branch president described the us-induced turmoil as“Unlike any shock in the past”, saying its impact on the economy was hard to quantify. Bankruptcy filings totalled 10,144 in the 2024 fiscal year, the most in 11 years, amid increased uncertainty over the BOJ’s rate rise timetable, according to Tuesday of TSR, a credit research company. In this case, the U. S. tariffs are of particular concern to many in Japan.
In order to deal with the impact of tariffs, the Japanese government has set up about 1000 special consultation windows across the country, and implemented measures such as capital flow support for small and medium-sized enterprises. There are media reports that the Japanese government and ruling party are considering preparing supplementary budget plans to deal with the U. S. government’s high tariffs and long-term price increases.
“Absolutely intolerable.”
In recent days, a number of voices in Japan have called on the government to take tougher measures against the U. S. tariff policy.
“Tokyo News” 7, wrote in an editorial, the United States imposed high tariffs will inevitably hit Japan’s domestic industry a major blow. Small and medium-sized enterprises will face serious consequences. The public and private sectors must work together to provide relief measures to support smes. The Donald Trump administration’s high tariffs were an unsustainable folly that flouted economic principles. The Japanese government must ask the US to lift the tariffs. The Yomiuri Shimbun published a commentary on the 4th saying that the Japanese government should make it clear that“Reciprocal tariffs” are illegitimate measures that will not be tolerated, and should file a case with the World Trade Organization, work with the EU and other countries and regions to develop responses [ to us tariffs ] . The Asahi Shimbun argues that the Japanese, European and other powers must calmly but firmly urge the Donald Trump administration to reconsider its position and co-operate more to prevent the spread of protectionism. Most importantly, Japan must urgently strengthen cooperation through all diplomatic channels to prevent countries from being caught in a vicious cycle of retaliation.
The current lack of a strong Japanese response is another political setback for Ishiba, prompting some opposition parties to call for the motion of no confidence to be passed, the Japan Times reported Thursday. Yoshihiko Noda, head of the Constitutional Democratic Party of Japan, said Ishiba should first mobilise his party’s forces before taking a national stand-off with the US.