Trump’s higher tariff on Japan leaves Tokyo stunnedpublished at 11:20 British Summer Time
Shaimaa Khalil
Tokyo correspondent
Image source, ReutersAt the closing of trading today, Tokyo was stunned.
Not just because it’s looking into billions of dollars in projected losses, and a rollercoaster market ride – but as the US’s key economic and security ally in Asia, Japan feels betrayed.
Tokyo’s relationship with DC could not be more different from Beijing. One is a friend and the other is a foe. And yet it feels like Japan too must swallow the ramifications of the global reciprocal tariffs.
There’s a “how could you do this to us” sentiment in the political air here.
Japanese Prime Minister Shigiru Ishiba said the “whole country needs to be united” in the face of a “national crisis.”
The government has set up over a thousand consultation desks at financial institutions and business organisations nationwide, from Hokkaido in the north to Miyako Island in the south, to field tariff-related inquiries.
“We need to rectify what needs to be rectified, without getting emotional,” Ishiba said addressing parliament last week, calling for diplomatic composure and reiterating Tokyo’s commitment to the US economy.
But with the 25% levy on cars already in place, the economic danger is real for the US ally. Japan’s car industry which makes up for 20% of its total exports is projected to suffer a $17bn loss in potential exports if these tariffs continue.
A disaster scenario that Tokyo wants to avoid – although is is still unclear how.
