Japan introduces urgent economic measures to ease pain from US tariffs

Japan introduces urgent economic measures to ease pain from US tariffs

Shigeru Ishiba, the prime minister of Japan, has announced urgent economic measures to reduce any effects on domestic and business sectors caused by the new tariffs on Japanese goods.

According to a government document, the package includes subsidies to lower gasoline prices by 10 yen ($0.07) per litre (0.26 gallons) and partially cover electricity bills for three months starting in July as part of Ishiba’s announcement on Friday.

At a&nbsp, tariff&nbsp, task force meeting, Ishiba said, “I have instructed cabinet members to make the utmost efforts to assist firms and households that have been concerned about&nbsp, tariff&nbsp, impact.”

He claimed that US tariffs could have a significant impact on Japanese industries like those producing steel and cars.

A wider range of businesses will be eligible for low-interest loans from government-backed banks in order to make small and medium-sized businesses more vulnerable to economic swings.

In response to the impact of US tariffs on Japan’s enormous automotive industry, the government will also take into account other measures to boost domestic consumption.

Economic minister Ryosei Akazawa claimed that the package’s funding could be covered by a reserve fund, removing the need to create an additional budget.

US tariffs that are excessive

On April 2, US President Donald Trump imposed a 25% import tariff on cars and trucks. Additionally, he later reduced the tariff to 10% for 90 days, which he previously announced, and set a 24 percent tariff on all imported goods from Japan.

Next week, Akazawa, who is Japan’s top trade negotiator, will make a second round of trade talks in Washington.

According to a report released on Thursday by the Nikkei business daily, Japan may increase US soybean imports as part of negotiations.

Markets around the world, including those in Japan, have been affected by Trump’s imposition of tariffs due to uncertainty.

Source: Aljazeera

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