Experts Say U.S. Tariff Policy ‘Extremely Regrettable’; Fiscal Policy Council Members Ask Govt to Plan for Impact

The Yomiuri Shimbun

14:07 JST, April 11, 2025

The series of tariffs imposed by U.S. President Donald Trump’s administration are “extremely regrettable,” expert members of the Council on Economic and Fiscal Policy said at a meeting on Thursday. The members asked the government to analyze the tariffs’ impact on the Japanese economy and come up with a plan to provide the necessary support.

The members also called on the government to ask Washington to rethink the tariffs.

“The government will consider the impact on domestic industries and take all possible measures to give the necessary support, such as financial assistance,” said Prime Minister Shigeru Ishiba, who heads the council.

The council’s expert members, including Keidanren (Japan Business Federation) Chairman Masakazu Tokura, complained that the U.S. tariff policy could put significant downward pressure on Japan’s exports, production and capital investment. In particular, if the production of automobiles, which account for about 30% of Japan’s exports to the United States, were forced to be reduced, it would expand the impact to a wide range of industries, they said. The members asked the government to help small and midsize businesses with their cash flow.

The meeting also discussed fiscal soundness in the context of the Basic Policy on Economic and Fiscal Management and Reform, which the government is expected to finalize in June. Japan will likely fall short of its target of achieving a primary balance surplus in fiscal 2025.

The expert members called for a new target and “flexibility to respond to short-term economic fluctuations,” with the impact of the U.S. tariff policy in mind.