The Japanese government has approved a $6.3 billion aid program to support small and medium-sized businesses and households that have suffered losses as a result of US President Donald Trump’s tariff policy. About this informs The New York Times.
As the Minister of the Cabinet of Ministers Yoshimasa Hayashi noted, the funds will be used to provide financial assistance to companies and to compensate the population for electricity costs. In addition to the predicted economic downturn due to the new tariffs, the government is also facing public outrage over price hikes and pressure to reduce the national debt.
Although Trump has temporarily delayed the imposition of additional 24% tariffs on Japanese goods until early July, Japan’s auto industry is already suffering losses due to the current 25% tariffs on finished cars and auto parts.
Toyota expects losses of $1.3 billion in April and May alone. Significant losses are predicted for Honda and Nissan. In particular, Nissan is considering the option of closing two plants in Japan and moving part of its production to the US to avoid new tariffs.
Economists warn that the additional tariffs could deal a serious blow to the Japanese economy. The country’s government is also concerned about the wider effects of global trade tensions, which could more than halve the pace of economic growth. Similar support programs were previously implemented by Spain ($15 billion) and Canada, which were also affected by the new American tariffs.
