Ishiba: ‘All Options’ Being Considered for Response to U.S. Auto Tariffs Set to Go in Effect in Early April

The Yomiuri Shimbun

15:53 JST, March 27, 2025

The government will consider “all options” as it formulates a response to the 25% tariffs being slapped on auto imports to the United States, Prime Minister Shigeru Ishiba said Thursday.

“We’ll need to think about an appropriate response,” Ishiba said at the House of Councillors Budget Committee, after U.S. President Donald Trump had announced the duty would be placed on auto imports, including from Japan, early next month. “Naturally, all options will be subject to consideration.”

Ishiba said he had instructed relevant Cabinet ministers to lobby the U.S. side for exemptions to the tariffs, examine the levies’ possible impact on domestic industries and employment, and take steps such as financing measures.

At a press conference that morning, Chief Cabinet Secretary Yoshimasa Hayashi described Trump’s announcement as “extremely regrettable.” Hayashi also revealed that the government had strongly pressed the U.S. side to exempt Japan from the tariffs.

According to the Finance Ministry’s trade statistics, Japan exported about ¥6.03 trillion worth of automobiles to the United States in 2024. This accounted for about 30% of all Japanese goods exported to that country. If the auto tariffs are imposed, the price competitiveness of Japan-made vehicles in the United States would decrease, and there are concerns that sales could drop.

On March 10, Economy, Trade and Industry Minister Yoji Muto met with U.S. Commerce Secretary Howard Lutnick and other officials in Washington to seek an exemption for Japan, but this effort ended in failure.