Govt Plans Measures to Blunt Impact of U.S. Tariffs; Prime Minister Meets With Local Leaders, Party Officials

By Masashi Yamaguchi and Miyako Taniguchi / Yomiuri Shimbun Staff Writers

16:35 JST, April 23, 2025

With the impact of U.S. President Donald Trump’s tariff measures looming for Japanese industries and employment, the government is set to take full-fledged action to cushion the blow.

Prime Minister Shigeru Ishiba received requests and proposals on the matter on Tuesday, in a series of meetings with local government leaders and the chairpersons of the Policy Research Councils of the ruling Liberal Democratic Party and its coalition partner Komeito.

In Ishiba’s meeting with Tokyo Gov. Yuriko Koike and Aichi Gov. Hideaki Omura at the Prime Minister’s Office on Tuesday, the three exchanged views on the tariffs’ possible impact on Japan.

The governors quoted Ishiba as saying that he would deal with the problem appropriately. The prime minister also reportedly said that the government would make the utmost effort to support Japan’s export industries, in parallel with negotiations with the United States.

Japan has been hit with a 24% levy that Trump calls a “reciprocal tariff” on its exports to the United States, although these tariffs have been paused for 90 days. However, a 10% universal rate remains in place, as does a 25% duty for automobiles.

After the meeting with the prime minister, Koike told reporters that the combined number of companies, including manufacturers, in Tokyo and Aichi Prefecture is about 620,000. This accounts for 20% of the total nationwide.

“[The U.S. tariff measures] would have a significant impact,” Koike said. “We want the government to take all possible measures to support domestic businesses,” said Omura. Toyota Motor Corp. is headquartered in Omura’s prefecture of Aichi.

The LDP and Komeito presented separate proposals to the prime minister, seeking measures to support companies’ cash flow and boost consultation frameworks within government ministries and agencies. The moves are apparently aimed at demonstrating that the government and the ruling parties are doing everything they can to combat the impact of tariffs.

“We asked the government to compile a policy package to counter the so-called Trump shock,” said Itsunori Onodera, chairperson of the LDP Policy Research Council. The LDP and Komeito plan to closely examine the U.S. policy’s possible impact on businesses and people’s livelihoods, and make additional proposals if necessary.

The LDP and Komeito’s proposals appear to be part of their efforts to show the public, ahead of the House of Councillors election this summer, that they are prioritizing the economy.

The LDP’s proposals include measures against soaring consumer prices, such as releasing stockpiled rice and lowering gasoline prices. “We want to devise effective measures while carefully observing the impact of U.S. tariffs,” a senior LDP official said.

The government is expediting efforts to provide cash flow support to companies struggling with declining exports. It has set up about 1,000 consultation counters across the country, including at government-affiliated financial institutions, and relaxed requirements for the Japan Finance Corporation’s loans for micro, small and mid-size companies. It is extending prioritized support to auto parts manufacturers, through such measures as preferentially giving them subsidies.

If the U.S. tariff measures are implemented for a prolonged period, Japan’s government will have to adopt drastic support measures to help companies develop new export destinations, make capital investments to transform their business, and maintain employment. In that event, the government will be tested on its ability to implement effective measures while taking into consideration how the tariffs are affecting the country.

“We will make an ‘all-Japan effort’ in taking steps to help domestic industries,” said Chief Cabinet Secretary Yoshimasa Hayashi.