Japan Seeks Exemption from US Auto Tariffs as Deadline Approaches

Japanese Prime Minister Shigeru Ishiba announced Tuesday that his government is making a final push to secure an exemption from the US’s new 25% auto tariffs, which are set to take effect at midnight US time on Wednesday.

Speaking to reporters, Ishiba stated that he is willing to travel to Washington to negotiate directly with US President Donald Trump in an effort to shield Japan’s auto industry from the tariff increase. Despite Japan’s close alliance with the US, it has not yet received an exemption from the new trade measures, which are expected to have significant economic consequences for Japanese automakers.

The tariffs, which will initially apply to fully imported cars before expanding to auto parts in the coming weeks, pose a major concern for companies like Toyota Motor Corp. and Honda Motor Co., whose exports to the US play a key role in Japan’s economy. A recent Bank of Japan survey indicated that business sentiment among large manufacturers has declined for the first time in a year, reflecting growing uncertainty over trade policies.

In response to the tariffs, Japanese Trade Minister Yoji Muto traveled to Seoul to meet with South Korean and Chinese counterparts. The officials reaffirmed their commitment to promoting free and fair trade while expressing concerns over the rise of protectionist policies.

Ishiba emphasized that his administration is working “day and night” to negotiate with US officials and mitigate the impact of the tariffs. If they go into effect, he said the Japanese government will take measures to support affected businesses, including establishing 1,000 consultation centers across the country for small and medium-sized auto parts manufacturers. Additional financial assistance will be provided to struggling businesses if necessary.

“As prime minister, I must do everything in my power to protect Japanese industries and jobs,” Ishiba said. “If it becomes clear that my direct intervention is necessary, I will not hesitate to go to Washington.”

Japan’s auto industry is bracing for potential disruptions, with analysts warning that higher costs could impact sales and profitability. While some manufacturers operate production facilities in the US, they may still face supply chain challenges due to the tariffs on imported parts.

The Associated Press, CNBC, and USA Today contributed to this report.