The Japanese Prime Minister, Shigeru Ishiba, expressed urgency in persuading U.S. President Donald Trump to exempt Japan from the upcoming auto tariff hike set to start on Wednesday. Ishiba mentioned his readiness to travel to Washington for direct negotiations with Trump, as the U.S. plans to implement 25% tariffs on auto imports soon, extending to fully-imported cars and auto parts.

Despite Japan's efforts to secure exemptions given its prominent position as a key U.S. ally in Asia, no such concessions have been granted. Japan has intensified collaborations with other affected countries, including South Korea and China. The concern over higher tariffs is shared by major Japanese automakers like Toyota Motor Corp. and Honda Motor Co., as their exports to the U.S. significantly contribute to Japan's economy.

The Bank of Japan's recent survey highlighted a decline in business sentiment among large manufacturers due to the tariff uncertainties. Ishiba emphasized the government's commitment to mitigating the impact of the tariffs on Japanese industries and jobs. The government is strategizing to establish consultation channels nationwide to address concerns from auto parts makers and other affected manufacturers. In case of adverse effects on businesses, the government aims to provide extensive support to alleviate financial strains on business owners.