On Friday, the Japanese government unveiled a set of emergency economic measures to counter the negative effects of US President Donald Trump’s higher prices before the second round of bilateral trade negotiations expected next week.
The emergency package includes five pillars, including support for business financing and stages to stimulate consumption, with the aim of relieving the concern that American samples could weigh on Japan exports, potentially making a heavy price on the wider economy.
The government of Prime Minister Shigeru Ishiba is also committed to reducing the prices of gasoline and diesel by 10 yen per liter, provides grants to energy bills and consider extending the scope of low interest loans for small businesses next month.
Japanese Prime Minister Shigeru Ishiba (C) is expressed during a meeting in Tokyo on April 25, 2025, in order to describe a set of emergency economic measures in response to the increase in American prices imposed by President Donald Trump. (Kyodo)
During a meeting to trace the package, Ishiba urged government representatives to make maximum effort to mitigate the impact of higher American prices.
American prices could “significantly harm the national industries underlying our nation, such as cars and steel,” said Ishiba, highlighting the need for Tokyo and Washington to work together for mutual benefit.
“It is extremely important for us to clearly transmit to the United States that Japanese companies have made a significant contribution to the American economy by investment and job creation,” he added.
The Minister of Economic Revitalization Ryosei Akazawa, a close assistant from Ishiba, plans to visit the United States again for three days from Wednesday to keep discussions with the Treasury Secretary Scott Bessent, the negotiation point with negotiations with Japan.
The file photo taken in August 2023 shows a person pumping gas in a vehicle in a service station in Moriguchi, Osaka prefecture. (Kyodo)
Akazawa’s trip to the United States is considered an opportunity for Japan to put pressure on exemptions or revisions of the radical tariffs imposed by Trump, which, according to Tokyo, threatens the stability of world trade.
According to the end of the second cycle of talks, the government of Ishiba could introduce additional steps to prevent the performance of Japanese manufacturers from falling and consumer confidence from deteriorating strongly, sources said close to the issue.
Trump has decided to impose higher import duties on cars, steel and aluminum. A 10% reference direct debit remains in place despite a 90-day stay for so-called reciprocal rates.
The photo taken on March 27, 2025 shows vehicles for foreign countries in a logistics center in Kawasaki near Tokyo. President Donald Trump announced on April 2 a plan to impose prices on all countries, including 24% on Japanese imports, to help consolidate the American manufacturing industry. (Kyodo)
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