Japan has announced a package of measures worth over $15 billion aimed at protecting small and medium-sized enterprises (SMEs) from the impact of US tariffs.
Washington's key ally is subject to the same 10 percent base tariffs imposed by President Donald Trump on most countries, plus higher tariffs on cars, steel, and aluminum.
The 2.2 trillion yen ($15.5 billion) package will include corporate financing assistance and easier lending terms from a state-run credit institution, Chief Cabinet Secretary Yoshimasa Hayashi said, according to AFP.
"We will provide full support to small and medium-sized enterprises affected by US tariffs," Hayashi said at a press conference.
Trump also announced 24% "reciprocal" tariffs on Japan in early April, but later postponed them along with similar measures for other countries until early July.
Japan wants all of Trump's tariffs on its exports to the US to be lifted, and the government's tariff envoy is expected to return to Washington this week for a fourth round of talks.
Prime Minister Shigeru Ishiba said his goal is to reach an agreement with the US president during next month's G7 meeting in Canada.
Trump's 25% tariffs on cars are particularly painful for Tokyo, as around 8% of all jobs in Japan are linked to this sector.
The world's fourth-largest economy contracted by 0.2% in the first quarter of 2025, increasing pressure on the unpopular Ishiba ahead of upper house elections expected in July.
The government also announced that it would allocate 288 billion yen to help families cope with rising electricity and gas prices in the three months to September, when demand for air conditioners will increase due to the heat.
The planned aid should reduce utility bills by 3,000 yen per household for the quarter, Hayashi said, adding that it was part of efforts to cope with US tariffs and inflation.
The government also plans to increase funds for special subsidies to help organizations such as hospitals and small businesses cope with energy costs not covered by existing assistance programs. | BGNES