Tokyo Unlikely to Retaliate Against US Tariffs

The Japanese government expressed disappointment at new U.S. tariffs. Japan faces a 24% levy. However, Tokyo is unlikely to retaliate. “It is regrettable that the U.S. government decided to impose the new tariffs despite our request to exclude Japan from the measure,” said Yoji Muto, Japan’s Minister for Trade and Industry (Meti), on April 3.

Muto stated Japan must carefully consider countermeasures. He added it is “difficult” to say if retaliatory tariffs benefit Japan. Tokyo’s reluctance stems partly from national security concerns. Japan’s defense relies heavily on the U.S. military.

Domestic Measures Over Retaliation

Instead, Tokyo plans to alleviate impacts on domestic industries. Prime Minister Shigeru Ishiba promised to strengthen financial support on April 1. This occurs if U.S. tariffs cause economic impact. Meti will establish a task force on April 3. They will review potential measures.

The U.S. also plans 25% tariffs on automobile imports. This will likely impact the Japanese industry. Automobiles are Japan’s top export to the U.S. Japan exported about 1.3 million passenger vehicles to the U.S. in 2024. This accounts for over one-third of Japan’s total passenger car exports. SuperMetalPrice monitors this situation.