Latest news with #U.S.TariffMeasures
Yomiuri Shimbun
27-05-2025
- Business
- Yomiuri Shimbun
Japan Govt to Spend ¥900 Bil. in Response to U.S. Tariffs; Amount to Fund Subsidies for Electricity, Gas Bills for July to Sept.
Yomiuri Shimbun file photo The Prime Minister's Office in Tokyo The government decided at a Cabinet meeting on Tuesday to spend ¥388.1 billion from the fiscal 2025 budget reserve fund to respond to tariffs by the administration of U.S. President Donald Trump. The amount will be used to fund such subsidies as those for electricity and gas bills for July to September, the first fiscal stimulus in response to U.S. tariffs. The total amount of fiscal spending to combat U.S. tariffs, including the existing budget, is expected to be around ¥900 billion. The government compiled in April an emergency response package, which includes measures to stimulate consumption and support small and medium-sized businesses, and has now secured financial resources to implement the package. Subsidies for electricity and gas bills are the main pillar of the package and will be funded by ¥288.1 billion from the reserve fund. A standard household is expected to pay about ¥3,000 less over the three-month period. In addition, ¥100 billion from the reserve fund will be allocated for local government subsidies, which can be used at their own discretion to combat high prices. The amount received by local governments will increase to ¥300 billion, including their existing budgets, providing more support for hospitals that use liquefied petroleum gas as well as small and medium-sized businesses. With the existing budget, the Japan Finance Corporation will ease requirements for safety-net loans to help small and medium-sized businesses improve their cash flows and maintain employment. 'The impact of [U.S.] tariffs is becoming apparent in some industries, as some companies expect to see a decrease in profits,' said Prime Minister Shigeru Ishiba at a meeting of the Comprehensive Response Headquarters for U.S. Tariff Measures on Tuesday. 'I want you to carefully listen to the voices of those on the ground that are changing moment by moment, and to increase your sensitivity to understand the impact of the tariffs.' In preparation for the possible prolonged tariffs, the government intends to compile a supplementary budget for fiscal 2025 to implement additional measures.
Yomiuri Shimbun
25-04-2025
- Business
- Yomiuri Shimbun
Japanese Govt Mulls Boosting U.S. Corn Imports in Tariff Negotiations
Yomiuri Shimbun file photo Prime Minister's Office The government is considering a plan to increase imports of U.S.-grown corn as a possible card to play in upcoming tariff negotiations with the United States, The Yomiuri Shimbun has learned. The government anticipates this corn could be used for next-generation sustainable aviation fuel and livestock feed, according to multiple government sources. Economic revitalization minister Ryosei Akazawa will visit the United States from April 30 to May 2 for ministerial-level talks with U.S. Treasury Secretary Scott Bessent and other officials. Tariff negotiations are expected to get into full swing at these meetings. The United States is Japan's biggest supplier of corn. In 2024, Japan imported about 11.5 million tons of the grain (worth about ¥459 billion) from the United States. No tariffs are applied to corn for livestock feed. Prime Minister Shigeru Ishiba had secretly instructed relevant government ministries and agencies to examine demand in the domestic market for corn for animal consumption. The use of imported corn for sustainable aviation fuel appears to reflect consideration of U.S. expectations that this could be a way to boost their corn exports, according to the sources. The United States is the world's largest corn exporter and has even shipped its corn to China, which has imposed tariffs. The government is considering increasing imports of U.S. soybeans, a large proportion of which had been exported to China. In a similar vein, the government is toying with the idea of sounding out the United States about buying corn exports that had originally been destined for China, as the amount going to China is expected to decline due to tariffs. The Yomiuri Shimbun In negotiations for a Japan-U.S. trade agreement conducted during U.S. President Donald Trump's first administration, then Prime Minister Shinzo Abe accepted Trump's demand and promised to boost imports of U.S. corn. This move prevented additional U.S. tariffs being slapped on Japanese cars. In a recent social media post, Trump cited Japanese vehicle safety standards as a major nontariff barrier. Based on this, Ishiba told the Land, Infrastructure, Transport and Tourism Ministry to examine whether there was any room for revising this situation. Ishiba plans to carefully think over this issue while continuing to consider the impact any changes could have on vehicle safety. The government's Comprehensive Response Headquarters for U.S. Tariff Measures was to hold a meeting Friday. All Cabinet ministers were to attend this meeting and closely examine bargaining chips for the negotiations. Given the ongoing rice shortage in Japan, boosting imports of this staple is shaping up as a powerful card. The government's top priority is convincing the United States to rethink the tariffs imposed on automobiles. Akazawa will likely present a package of negotiation items during his second round of talks with Bessent and other U.S. officials, and push for a response from the U.S. side. 'We'll put items of great interest to both sides on the table and then discuss them,' Akazawa said to reporters Thursday.
Yomiuri Shimbun
25-04-2025
- Business
- Yomiuri Shimbun
Japan Accelerates Financial Assistance for Businesses; Working to Handle Growing Concerns Over Tariffs
Yomiuri Shimbun file photo The Prime Minister's Office The government decided on an emergency response package aimed primarily at supporting small and medium-sized enterprises affected by tariff measures imposed by the administration of U.S. President Donald Trump. This was concluded at the third meeting of the Comprehensive Response Headquarters for U.S. Tariff Measures held at the Prime Minister's Office on Friday. Given concerns over a potentially serious impact on the domestic economy, the package includes support measures for small and medium-sized enterprises, specifically targeting cash flow assistance and employment retention, as well as initiatives to stimulate consumption. Prime Minister Shigeru Ishiba said U.S. tariffs could 'fundamentally alter the free and fair economic order,' and instructed ministers to 'actively pursue concrete and effective utilization [of the package] tailored precisely to the needs of businesses.' The emergency package includes establishment of consultation centers for affected businesses and exploration of lowering interest rates through government-affiliated financial institutions to aid companies impacted by tariffs. Additionally, financial institutions will be requested to provide repayment deferral programs and loan term adjustments. Procedures for employment adjustment subsidies, which finance employee leave allowances, will also be expedited. Economic revitalization minister Ryosei Akazawa, who is in charge of negotiations, is scheduled to visit the United States starting Wednesday to hold a second round of talks with U.S. representatives over the issue of tariffs. Ishiba emphasized the importance of 'strongly requesting a review,' urging close coordination and thorough preparations to achieve results beneficial to both Japan and the United States.
