JAPAN DEMANDS EXEMPTION FROM US AUTO TARIFFS

TOKYO, March 27 (Bernama-Kyodo) -- The Japanese government asked the United States on Thursday for Japan to be exempted from auto tariffs, calling the latest move by its closest ally "extremely regrettable," Kyodo News Agency reported, citing a top government spokesman. 

"We strongly urged (the US government) to exclude Japan from the measure," Chief Cabinet Secretary Yoshimasa Hayashi said, adding he was instructed by Prime Minister Shigeru Ishiba to have related ministers cooperate in responding to the issue.

Industry minister Yoji Muto separately told reporters the government had again urged Washington to exclude Japan from the additional 25 percent tariff on all automobiles made outside the United States, following a similar request when he visited the country earlier this month.

Hayashi said US moves to restrict trade could have a "large impact on bilateral economic ties, the global economy and the multilateral trading system."

US President Donald Trump announced Wednesday an additional 25 percent tariff on auto imports without exceptions. It is feared the hike, which is expected to be implemented on April 3, will disrupt global supply chains and deal a blow to Japanese automakers given their penetration into the US market.

"We must consider steps to respond appropriately. We have all possible options on the table," Ishiba told a committee session in the House of Councilors.

Given the likely negative economic impact, Japan has asked to be exempted from the auto tariffs. But its efforts to win preferential treatment apparently fell flat.

Shipments of US-bound cars and auto parts made up a big portion of Japan's total exports by value to the world's largest economy in 2024.

Speaking at a press briefing, Hayashi underlined the "big contributions" that Japanese companies, including automakers, have made to the U.S. economy. Japanese automakers have made direct investments into the United States worth around $61.6 billion and created around 2.3 million jobs, he said.

"It's extremely regrettable" that the United States decided to hike auto tariffs with no exceptions, he said. "We will carefully examine the impact on Japan and will continue to strongly call for an exemption."

At the headquarters of the ruling Liberal Democratic party, policy chief Itsunori Onodera met with US Charge d'Affaires Joseph Young.

According to Kyodo, Onodera told Young that Japan needs to negotiate with the United States as the planned tariff hike will have a big negative impact on the Japanese economy. He asked the US envoy to convey that message to the US administration, according to Onodera.

Japanese Vice Foreign Minister Takehiro Funakoshi told his US counterpart Christopher Landau during phone talks that the measure "is extremely regrettable" and Tokyo wants to continue talks over the issue, a Japanese government source said.

-- BERNAMA-KYODO