Japan to spend $6.3 billion to protect businesses and people from Trump tariffs
Japan has joined a number of countries preparing financial assistance to mitigate the domestic consequences of US President Donald Trump's tariff policy, The New York Times reports.
The Japanese government has approved a $6.3 billion support package to help small and medium-sized businesses and households affected by US tariffs.
According to Japanese Cabinet Minister Yoshimasa Hayashi, the money will be used to provide financial support to businesses and subsidize electricity costs for the population.
In addition to the expected economic downturn due to US tariffs, the Japanese government is facing public outrage over rising prices and growing pressure to reduce public debt.
Although Trump temporarily postponed the implementation of new 24% tariffs on Japanese goods until early July, Japan's auto industry is already suffering from 25% tariffs on finished cars and auto parts.
Toyota, the country's largest automaker, is forecasting losses of $1.3 billion in April and May alone due to tariffs. Honda and Nissan are also expecting significant losses.
Nissan is even considering closing two plants in Japan and moving some production to the US to avoid tariffs.
Economists warn that the new tariffs could hit the Japanese economy hard, and the government also fears the broader effects of global trade tensions could more than halve economic growth.
Previously, similar support packages have already been presented by Spain ($15 billion) and Canada, which are also suffering from new American tariffs.
- On February 12, it became known that the Japanese government had officially appealed to the Trump administration to exempt Japanese companies from new tariffs on steel and aluminum imposed by the United States.
- In April, Japanese investors staged a sell-off in foreign bonds following Trump's tariffs.
- On May 27, it was reported that Japan had lost its status as the world's largest creditor for the first time in 34 years.
