Japan complies emergency economic package to counter US tariff hikes

In a Friday announcement, Prime Minister Shigeru Ishiba disclosed plans for emergency economic relief measures designed to mitigate the effects of recently imposed US import duties on Japanese industries and households.

The package includes corporate financing support, a 10 yen ($0.07) per liter gasoline subsidy, and partial coverage of electricity bills for three months starting in July.

A wide range of small and medium-sized companies will be given low-interest loans by state-owned banks.

US tariffs pose a particular risks to Japan's key steel and auto sectors. The government stands ready to implement additional measures to stimulate domestic consumption, depending on the trade barriers' impact on auto manufacturers.

The emergency package could be funded through contingency reserves, Economy Minister Resei Akazawa said, avoiding the need for a supplementary budget.

The US administration imposed 25% tariffs on vehicle imports and 24% duties across all Japanese products effective April 2, though these were subsequently reduced to a temporary 10% rate for three months.