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Japan’s prime minister mentioned “each choice” was into account and South Korea promised an emergency response after Donald Trump introduced 25 per cent tariffs on automobile imports to the US, elevating the spectre of a world commerce conflict.
The feedback from Shigeru Ishiba to Japan’s parliament got here as Trump’s newest commerce salvo hit shares in carmakers from Toyota to Stellantis to Ford. The Stoxx Europe 600 Cars & Components index fell 3 per cent in early buying and selling on Thursday.
Trump mentioned the tariffs would go into impact on April 2, when Washington can also be anticipated to use a variety of reciprocal tariffs towards US companions.
The duties on vehicles are essentially the most aggressive transfer up to now in a commerce coverage whose chaotic rollout has been marked by U-turns and has rattled buyers.
“We’d like to consider the most suitable choice for Japan’s nationwide curiosity,” mentioned Ishiba. “We’re contemplating each choice with a view to attain essentially the most applicable response.”
Business executives warned that Asian and European carmakers can be among the many hardest hit. Luxurious producers, equivalent to Jaguar Land Rover and Aston Martin, are additionally uncovered given they don’t make vehicles within the US.
As America’s buying and selling companions raced to reply, South Korea’s business minister Ahn Duk-geun mentioned the nation’s carmakers would expertise “appreciable difficulties” due to the tariffs and promised to announce emergency measures subsequent month, following a gathering on Thursday with business executives.
European Fee president Ursula von der Leyen mentioned late on Wednesday that the EU was additionally assessing its choices.
The choice by the White Home to impose duties on imported automobile elements in addition to accomplished autos would enhance the injury to the automobile business, analysts mentioned. Virtually half of autos offered within the US are imported and vehicles assembled within the US include practically 60 per cent foreign-sourced elements, in keeping with analysis from Bernstein.
Sigrid de Vries, director-general of European automobile business physique Acea, urged Trump to “contemplate the adverse affect of tariffs not solely on world automakers however on US home manufacturing as nicely”.
European producers export as much as 60 per cent of the autos they make within the US, in keeping with Acea.
Japan is the most important exporter of completed autos to the US after Mexico, the place Japanese corporations are the dominant producers. Japan despatched $40bn value of vehicles to the US in 2024, representing 28.3 per cent of its general exports to the US.
Japan’s spokesperson Yoshimasa Hayashi described the tariffs as “extraordinarily regrettable”. He added that the Trump administration’s commerce coverage may have a significant affect on bilateral ties, the worldwide economic system and the multilateral buying and selling system.
Ishiba’s February assembly with Trump in Washington had initially been hailed as a hit for reasserting the power of the US-Japan alliance.
However merchants in Tokyo mentioned the bluntness of Ishiba’s tone — together with the “each choice” language — hinted at rising panic in Japan over the solidity of the connection.
Japan has in current weeks lobbied Washington for an exemption from tariffs, highlighting its standing as the largest provider of overseas direct funding into the US.
The nation’s economic system and commerce minister visited Washington this month, however the efforts haven’t secured the exemptions Japan had hoped for.
“Japan is the largest investor into the US, so we surprise if it is sensible for [the Trump administration] to use uniform tariffs to all international locations. That may be a level we’ve been elevating and can proceed to take action,” mentioned Ishiba.
Trump has mentioned the steep tariffs will persuade overseas corporations to make extra of their vehicles within the US, boosting the nation’s manufacturing business.
Hyundai, whose $7.6bn hybrid and electric vehicle factory in Georgia started operations on Thursday, has additionally unveiled plans to increase US manufacturing capability in anticipation of the Trump tariffs.
With extra reporting by Kana Inagaki and Mari Novak in London
