Tokyo reels after Trump announces automobile tariffs

key takeaways
  • The Trump administration’s announcement that it will impose 25% tariffs on automobile tariffs has roiled Tokyo, as the government is worried over the potential economic impact of tariffs on Japan’s largest export to the United States.
  • Prime Minister Ishiba Shigeru’s government is constrained in its ability to respond, both out of a desire to avoid a broader deterioration in relations with the US and concerns of the impact of a retaliatory spiral.
  • However, the automobile tariffs could weaken Ishiba politically when he is already vulnerable.

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