Japanese Prime Minister Shigeru Ishiba stated on Thursday that the Japanese government is contemplating "appropriate measures" in response to the imposition of tariffs on car imports by the United States. This announcement follows US President Donald Trump's declaration on Wednesday of a 25 percent tariff on "all cars that are not made in the United States," scheduled to take effect at 12:01 am eastern time on April 3.

"We have to think about appropriate measures following this announcement. Naturally, we will consider all options," Ishiba conveyed to the parliament. He emphasized Japan's substantial investments and job creation within the United States, noting, "Japan has made significant investments and significant job creation, which doesn't apply to all countries... We are the number one (country) in investment in the United States."

Ishiba acknowledged a deepening understanding from the US president on this matter but stressed the need to consider countermeasures given ongoing developments. "The US president's understanding on this is significantly deepening. However, various things are happening, so we are considering all kinds of countermeasures, and those exist as our options," he added.

Trump's tariff announcement precipitated a sharp decline in the shares of major Japanese auto manufacturers on Thursday. Toyota, the world's leading automaker, experienced a drop of nearly 3.5 percent, while Nissan shares decreased by 2.5 percent, and Honda's fell by as much as 3.1 percent. Mitsubishi Motors witnessed a 4.5 percent decrease, Mazda fell by 5.9 percent, and Subaru by 6.1 percent. South Korean automaker Hyundai also saw its shares dip by 2.7 percent.

The automotive industry constitutes a vital component of the Japanese economy, accounting for approximately 10 percent of the country's jobs. In 2024, vehicles represented approximately one-third of Japan's 21.3 trillion yen ($142 billion) in exports to the United States.

Earlier in March, Masanori Katayama, chair of the Japan Automobile Manufacturers Association (JAMA), cautioned against the repercussions of US trade protectionism during a press conference in Tokyo. He asserted that a 25 percent tariff "would have a negative impact overall on the economies of the United States and Japan."

Japanese ministers have been actively lobbying their US counterparts to secure tariff exemptions for goods, including steel and vehicles; however, these requests have been denied. The Trump administration defends the levies as a means to augment government revenue, revitalize American industry, and exert pressure on countries regarding US priorities.

Targeting imported cars, however, could potentially strain relations with close US allies. Approximately 50 percent of cars sold in the United States are manufactured domestically. Among imports, approximately half originate from Mexico and Canada, with Japan, South Korea, and Germany also serving as major suppliers.