Tensions Rise as Japan Confronts U.S. Tariff Impacts

Japanese Prime Minister Shigeru Ishiba expressed disappointment over Japan's failure to secure an exemption from U.S. tariffs announced by President Trump. The new tariffs affected Japanese markets, with the Nikkei share average plummeting and significant economic implications anticipated. Japan is considering measures to mitigate impacts and possibly retaliate.

Japanese Prime Minister Shigeru Ishiba expressed his disapproval on Thursday as Japan failed to obtain an exemption from the newly imposed tariffs by U.S. President Donald Trump. Despite weeks of diplomatic negotiations, Japan now faces economic challenges due to these tariffs, leading to widespread concern about domestic industry effects.

The announcement triggered a significant decline in the Nikkei share average, which dropped by 2.77%, amounting to a loss of 18.7 trillion yen ($127 billion) in market value. Economists predict that the tariffs could potentially decrease Japan's real GDP by 0.6% this year, following minimal growth projections for 2024.

Even as a 25% tariff on all U.S. car imports took effect, which hurt Japan's vital auto industry, Ishiba vowed to continue diplomatic efforts with the United States. Trade Minister Yoji Muto indicated the establishment of a task force to analyze tariff impacts, ensuring effective retaliation measures are considered.

(With inputs from agencies.)