Japan PM says Japan will put all options on the table to deal with Trump’s tariffs

Japan’s Prime Minister Shigeru Ishiba revealed on Thursday that the country will consider “all options on the table” in dealing with Washington’s import tariffs. The Trump administration issued Tokyo 25% duties on car imports to the U.S.

Ishiba argued that Tokyo was the largest investor in the U.S., and it made no sense to impose tariffs on all states. He also urged parliament that the country needs to consider what’s best for Japan’s national interest.

Tokyo plans to put ‘all options on the table’ in response to U.S. tariffs

Japan's Prime Minister says "all options" are on the table after US President Trump announced 25% tariffs on all auto imports, targeting the world's biggest suppliers including key Asian allies Japan and South Korea.

The latest.https://t.co/09KRJXHjIB pic.twitter.com/O973YYqNWP

— Kristie Lu Stout✌🏽 (@klustout) March 27, 2025

Japan’s Prime Minister Shigeru Ishiba acknowledged that Tokyo was ready to put “all options on the table” in tackling the Trump administration’s heightened trade policies. U.S. President Donald Trump on Wednesday imposed a 25% tariff on imported cars and light trucks from Japan to the U.S. starting next week.

“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.”

– Shigeru Ishiba, the Prime Minister of Japan

The President of the Liberal Democratic Party (LDP) revealed that the country was “putting all options on the table” in considering the most effective response. He did not specify the possible steps Tokyo may take in combating Washington’s trade policies.

Data from the Ministry of Finance revealed that automobiles made up 28.3% of Japan’s total exports to the United States in 2024, the biggest ratio among all items. The data also showed that the auto industry makes up around 3% of Japan’s gross domestic product (GDP). Tokyo’s auto industry has been the driver of recent wage hikes in the country, as automakers distribute the huge profits they reaped overseas to their employees.

Executive economist at Nomura Research Institute (NRI) Takahide Kiuchi believes that a 25% increase in U.S. auto tariffs will push down Japan’s GDP by roughly 0.2%. Kiuchi maintained that “the Trump tariff has the potential to immediately push Japan’s economy into deterioration.

Toyota Motor Corp., the world’s largest carmaker by delivery, plummeted by 4% in Tokyo, while Honda Motor Co. sank as much as 3%. Nissan Motor Co. lost about 3.5%, while Mazda Motor Corp retreated by more than 5% after Trump’s tariff announcement. Automakers also performed the worst on the Topix Transportation Equipment index since automobiles and auto parts account for more than a third of Japan’s export products.

The tariffs on automakers might lead to higher car prices for U.S. consumers, about half of whose purchases come from abroad. President and CEO of Autos Drive America Jennifer Safavian argued that “The tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and fewer manufacturing jobs in the U.S.

Trump ramps up trade war with 25% tariffs on automobiles

*TRUMP ANNOUNCES 25% AUTO TARIFFS ON ALL CARS NOT MADE IN US

Look on the bright side.

If your Toyota Camry costs 25% more, maybe Japan will finally be incentivized to secure our southern border.

— Spencer Hakimian (@SpencerHakimian) March 26, 2025

United States President Donald Trump imposed a 25 per cent tariff on imported cars and car parts. He said at the Oval Office on Wednesday that tariffs would “take back” money from foreign countries that have been “taking our jobs” and “taking our health.”

The President pledged to revive manufacturing in the U.S. and argued that tariffs would “spur growth like you haven’t seen before.” Trump also mentioned in a fact sheet that the tariffs set to take effect on April 2 would “protect and strengthen” the U.S. auto industry. He also argued that the industry had been undermined by excessive imports that threatened America’s domestic industrial base and supply chains.

Trump highlighted that foreign automobile industries, bolstered by unfair subsidies and aggressive industrial policies, had expanded while U.S. production remained stagnant. He also suggested that importers bringing in vehicles and parts under the United States-Mexico-Canada Agreement would have the chance to certify what portion of their products are U.S.-made so that they only pay the tariff on “non-U.S. content.”

President of the European Union Ursula von der Leyen said, “Tariffs are taxes – bad for business, worse for consumers, in the U.S. and the EU.” Leyen also maintained that the EU will continue to seek negotiated solutions while safeguarding its economic interests.