Japan putting ‘all options on table’ in dealing with U.S. auto tariffs, PM Ishiba says

File picture of Japan’s Prime Minister Shigeru Ishiba.
| Photo Credit: AP

Japanese PM Shigeru Ishiba said on Thursday (March 27, 2025) Tokyo will put “all options on the table” in dealing with Washington’s announcement to impose a 25% tariff on automobile imports.

U.S. President Donald Trump on Wednesday (March 26, 2025) unveiled a 25% tariff on imported cars and light trucks starting next week, widening the global trade war he kicked off upon regaining the White House this year.

Also Read | Trump places 25% tariff on automobile imports, expecting to raise $100 billion in tax revenues

“Japan is making significant amounts of investment to the United States. It’s also creating jobs,” Mr. Ishiba told Parliament.

“Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries. That is a point we’ve been making and will continue to do so,” he said.

Analysts say the move could deal a heavy blow on Japan’s economy given its reliance on auto exports to the United States.

Automobiles made up 28.3% of Japan’s total exports to the United States in 2024, the biggest ratio among all items, according to Ministry of Finance data.

“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response,” Mr. Ishiba said, without elaborating on the possible steps Tokyo may take.