Japan says ‘every option’ on table against Donald Trump’s 25% car tariffs

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The Japanese Prime Minister said that “every option” was under study and South Korea promised to respond to emergency situations after Donald Trump announced that 25 percent of the customs tariff for car imports to the United States, which raised the specter of global trade war.

The comments came from Shigro Eshiba to the Japanese parliament as the latest commercial shares of Trump in Toyota car makers to Stelins to Ford. The Stoxx EUROPE 600 Automobiles & Parts 3 percent fell in early trading on Thursday.

Trump said the definitions will enter into force on April 2, when Washington is also expected to implement a set of mutual definitions against American partners.

The duties of cars are the most aggressive step so far in a commercial policy that was characterized by his chaotic role in the rotation of U has shook investors.

“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.”

Industry executives have warned that Asian and European car makers would be among the most difficult strike. Luxury manufacturers, such as Jaguar Land Rover and Aston Martin, are also exposed because they do not make cars in the United States.

With the response of commercial partners in America, South Korea Industry, Ann Duk-Jon, said that the country’s car makers will face “great difficulties” due to the customs tariff and promised to announce emergency measures next month, following a meeting on Thursday with the executives in this field.

UNHCR president Ursula von der Lynn said late on Wednesday that the European Union was also evaluating its options.

Analysts said that the White House decision to impose duties on imported auto parts as well as completed vehicles will increase the damage to the auto industry. Nearly half of the vehicles that are sold in the United States are imported and the cars collected in the United States include approximately 60 percent of the external parts, according to a research from Bernstein.

Sigrid De VRIES, the general manager of the European Automobile Industry Authority, urged Trump to “consider the negative impact of definitions not only on global auto manufacturers but also for American local manufacturing.”

European manufacturers export up to 60 percent of the vehicles they make in the United States, according to ACEA.

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.

Japanese spokesman Yoshimasa Hayaishi described the definitions as “very unfortunate.” He added that the Trump administration’s commercial policy 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 option” – hinted at the high panic in Japan due to the hardness of the relationship.

In recent weeks, Washington has pressured a transplant, which highlighted 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 if this is logical [the Trump administration] To apply unified definitions to all countries. This is the point that we raise and we will continue to do so. “

Trump said the sharp tariffs will persuade foreign companies to form more cars in the United States, which enhances the industrial industry in the country.

The Hyundai operations, which started Hyundai operations, whose hybrid and electrical operations started with a value of $ 7.6 billion in Georgia, began plans to expand the scope of US production in anticipation of Trump’s definitions.

With additional reports by Kana Ingaki and Mari Novak in London