Prime Minister Shigeru Ishiba is leading efforts to address the looming impact of U.S. tariffs on Japan. Ishiba has instructed his Cabinet ministers to push the Trump administration for a review of the steep tariffs. This comes after Japan’s own attempt to negotiate the matter failed. In a meeting on April 8, Ishiba stressed the need for measures to support domestic industries.
The U.S. is set to implement reciprocal tariffs on all imports from Japan starting on April 9. This new set of tariffs follows industry-specific duties on automobiles, steel, and aluminum. Ishiba raised concerns that these broad restrictions could significantly harm Japan and the U.S., as well as destabilize the global economy. He emphasized the impact on the multilateral trading system, which has been under strain.
During the ministerial meeting, Ishiba instructed officials to assess the full effect of these U.S. tariffs on Japan. They are also tasked with continuing to pressure the U.S. government to reconsider its stance. Furthermore, the ministers were told to provide necessary support to Japan’s domestic industries that would be most affected by the tariffs.
Ishiba had a phone call with U.S. President Donald Trump on April 7, urging him to reconsider the tariffs. Trump, however, did not show any willingness to ease the measures. Despite this, both leaders agreed to appoint senior Cabinet officials from both sides to continue discussions on the matter.
In response, Ishiba assigned Ryosei Akazawa, the Minister for Economic Revitalization, to handle the ongoing tariff negotiations with the U.S. government. Akazawa, a long-time ally of Ishiba, is expected to focus on finding a way to address the tariff issue through high-level talks.
The situation has sparked a broader debate within Japan. Calls for measures to help businesses and consumers suffering from the tariffs are growing within both the ruling coalition and the opposition parties. At a news conference on April 8, Makoto Nishida, the Secretary-General of junior coalition partner Komeito, suggested emergency financial support. He also proposed subsidies to help businesses maintain employment.
Nishida went further, proposing additional steps, including benefits, tax cuts, and wage hikes. These measures would aim to stabilize domestic demand, which could be impacted by the tariffs. He also mentioned that he had discussed these ideas with Hiroshi Moriyama, Secretary-General of the ruling Liberal Democratic Party. According to Nishida, “All means available must be mobilized to protect people’s lives.”
Meanwhile, some officials within the government have voiced skepticism about the proposals for tax cuts and other economic measures. They view these calls as political tactics aimed at gaining voter support ahead of the upcoming Upper House elections. One senior official noted that tax cuts and other generous economic steps are not directly related to tariffs. The focus should be on identifying the industries and people most affected by the tariffs.
Masaji Matsuyama, the Secretary-General for the LDP in the Upper House, also mentioned that all options should be considered. He pointed out that measures like tax cuts on food could be among the solutions to support domestic consumption. However, Prime Minister Ishiba has shown reluctance to support this approach, considering it a populist move.
The debate within the Japanese government reflects the gravity of the situation. The U.S. tariffs on Japan are expected to cause significant disruption across several industries. With an election on the horizon, the government’s response could influence public perception of its ability to manage the economic challenges posed by these tariffs.
The ongoing trade tensions with the U.S. present a difficult challenge for Ishiba and his Cabinet. They must balance diplomatic negotiations with measures to protect the economy and domestic industries. As the situation develops, Japan is expected to continue pressing for a reconsideration of the tariffs while exploring ways to support its citizens and businesses during this uncertain time.
