Japan says “Every option” on the table against the tariff of Donald Trump by 25 %

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The Japanese Prime Minister said that “every option” was under study and South Korea promised to respond to the emergency after Donald Trump climbed his commercial war by revealing a 25 percent tariff on car imports to the United States.

The comments of Xijo Ishiba came in the Japanese parliament after Trump The latest trade SalvoHe said that he would enter into force on April 2. Washington is expected to implement a set of mutual definitions against partners and US allies on the same day.

Asian car makers are expected to be among the worst. The shares of Japanese car manufacturers fell between 2 percent and 5 percent on Thursday, while the shares of the largest car manufacturer in South Korea Hyundai and its subsidiary KIA fell about 4 percent.

“We need to think about the best option for the national interest of Japan,” said Ishiba. “We think about every option to reach the most appropriate response.”

His comments came after European Commission President Ursula von der Lin said that the European Union was also evaluating its options.

JapanThe official spokeswoman, Yoshimasa Hayashi, described customs duties, which will strike a widely considered industry as the driving force of the economy, as “very unfortunate.” He added that the emerging trade policy in the Trump administration can have a significant impact on bilateral relations, global economy and a multilateral trading system.

Initially, the Ishiba meeting was welcomed in February with Trump in Washington as a success to reaffirm the power of the American coalition of Japan.

But the merchants in Tokyo said that the tone of Ishiba – along with the language of “every choice” – hinted at High panic in Japan On the hardness of the relationship.

Japan in recent weeks Washington pressed an exemption From the customs tariff, while highlighting its position as the largest resource for foreign direct investment in the United States.

The country’s Minister of Economy and Trade visited Washington this month, but efforts did not obtain the exemptions that Japan had hoped for.

“Japan is the largest investor in the United States, so we wonder whether it is logical (the Trump administration) to apply a unified tariff to all countries. This is the point we raise and we will continue to do so,” said Ishiba.

Japanese auto makers built large production facilities in the United States, but their supply chains relied heavily on Canada and Mexico.

Japan is the largest source of final vehicles for the United States after Mexico, as Japanese companies are dominant manufacturers. Japan sent $ 40 billion to the United States in 2024, and represented 28.3 percent of its total exports to the United States.

Goldman Sachs analysts said that the influence of Japanese exports may be “large” because cars and parts represent such a large percentage of exports on the United States.

But they said that the general economic impact will be “somewhat limited” because Japan will not lose competitiveness against other car imports, which appreciates the strike to GDP at 0.1 percentage points.

Masanuri Katayama, head of the Automobile Manufacturers Association in Japan, a group of lobby, has warned that a “large production modification” is required if the US tariff is introduced against vehicle imports from Japan, Mexico and Canada.

But Julie Pot, a Bilham Smiths analyst, said that the pressure of customs tariffs could “paradoxically” forcing the fragmented car industry in Japan to unify it because the smaller groups will need support.

South Korea Industry Minister Ann Duk-Jon said that Korean car makers will face “great difficulties” due to the definitions and promised to announce emergency measures next month, following a meeting on Thursday with the executives in this field.

Hyundai, who 7.6 billion dollars in hybrid and electrical cars factory In Georgia, its operations began on Thursday, also revealed plans to expand the US production capacity in anticipation of Trump’s definitions.

The auto company announced on Tuesday an investment of $ 21 billion in the United States, including the 5.8 billion dollar steel factory in Louisiana, as well as a goal to produce 1.2 million vehicles annually in the country, an increase of 700,000 currently.