The Japanese government announced a five-point package of urgent economic measures on Friday to mitigate the negative impact of US President Donald Trump’s tariff hikes. The package was announced ahead of the second round of Japan-US trade negotiations scheduled for next week.
The measures announced by the government led by Prime Minister Shigeru Isiba include supporting corporate financing, promoting consumption, lowering fuel prices and expanding the scope of low-interest loans for small businesses. The government announced a 10 yen per liter cut in gasoline and diesel prices and subsidies for energy bills. Speaking at the meeting where the package was announced, Prime Minister Isiba emphasized that high US tariffs could seriously affect Japan’s key industries, especially automotive and steel. “It is very important that we make it clear that Japanese companies make important contributions to the US economy through investment and employment,” he said. Ryosei Akazawa, economic revitalization minister and a close ally of Isiba, is expected to make a three-day visit starting next Wednesday to hold talks with US Treasury Secretary Scott Bessent. The Japanese government sees the visit as an opportunity to secure exemptions or revisions to the sweeping tariffs imposed by the US.
