Prime Minister of Japan Shigeru Ishiba
Japan faces national crisis due to new US tariffs
Japanese Prime Minister Shigeru Ishiba has said that the introduction of new tariffs by the Donald Trump administration could lead to a “national crisis”. According to the Prime Minister, Japan must respond with “unprecedented” measures to avoid serious consequences for its economy. This was reported by The Daily Star.
Speaking to a parliamentary committee, Ishiba stressed that the new duties of 24% on most goods and 27.5% on cars could seriously undermine Japan’s economy. “This situation can be described as a national crisis,” he said.
Disappointment with the US decision
Ishiba expressed his disappointment that Donald Trump did not take into account Japan’s numerous requests for exemptions from the new tariffs. Despite the close relations between the two countries and the interdependence of their economies, the US decided to impose tariffs on Japan as well.
Financial market reaction and possible consequences
The news of the new tariffs shocked financial markets. The Tokyo Stock Exchange fell by 3% on Thursday and by 4% on Friday. Experts warn that if the new duties remain in place, Japan’s economy could shrink by 0.2% to 0.9%.
As the automotive sector accounts for around 30% of Japan’s exports to the US, this impact could be particularly severe. In addition, Japanese investment in the US could decline significantly.
Japan is preparing a response
The Japanese government is considering several options for responding to the new tariffs. Prime Minister Ishiba hinted at the possibility of applying to the World Trade Organisation (WTO) or even introducing countermeasures against the US.
“Our government has to find the most effective way to respond to these tariffs,” Ishiba said.
Currently, relations between Japan and the United States are in a state of tension. It is not clear how Japan will solve the problem, but the government is already preparing for a tough response.
