METI to Support Firms Impacted by U.S. Tariff Policy; Safety Net for Enterprises to Be Expanded

The Yomiuri Shimbun

13:37 JST, April 7, 2025

The Economy, Trade and Industry Ministry is aiming to support companies likely to be affected by the United States’ reciprocal tariff policy.

Senior Vice Minister Yuichiro Koga was set to visit Subaru Corp.’s factory in Gunma Prefecture on Monday to meet its vice president and others. He is also scheduled to exchange opinions with parts manufacturers.

The ministry set up consultation desks at around 1,000 locations, including government-affiliated financial institutions and chambers of commerce and industry nationwide, and is increasing its financing support.

The Japan Finance Corporation’s Safety-net Loans for small- and medium-sized enterprises previously established conditions stating, for a company to be eligible for the loans, they must have suffered a “5% or more decrease in sales across the previous three months compared to the same period the prior year.” This requirement will be relaxed so the loans are available regardless of sales fluctuations if impacted by the tariff hikes.

The ministry subsidy system will give priority to auto parts suppliers to help small- and medium-sized companies change their business. Government-funded Nippon Export and Investment Insurance has positioned the U.S. tariff increase as a “political risk,” on par with war and natural disasters, and will cover losses incurred from cancellation of export contracts.