Japan To Spend ¥900 Billion In First Stimulus Combating Trump Tariffs

Japan’s government plans to spend 900 billion yen ($6.3 billion) on emergency economic measures to counter the negative impact of higher U.S. tariffs, marking the country’s first fiscal response to President Donald Trump’s trade duties, sources close to the matter said Monday, Kyodo News reported.

Roughly 600 billion yen will be allocated as subsidies to offset sharp increases in electricity and gas bills during the summer, while around 300 billion yen will be used to support financially struggling businesses.

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The overall scale of the relief package is expected to reach up to 2.8 trillion yen, including contributions from local governments, in a bid to counter a potential downturn in the broader economy, the sources added.

Amid concerns that Trump’s tariffs could damage business performance and suppress wages, Prime Minister Shigeru Ishiba’s administration is set to prioritize subsidies for utility bills and support for corporate financing.

In the lead-up to a national parliamentary election this summer, the Cabinet—whose approval ratings have fallen to their lowest since it was formed last October—is expected to approve funding for the package soon.

Roughly 600 billion yen will be allocated as subsidies to offset sharp increases in electricity and gas bills during the summer, while around 300 billion yen will be used to support financially struggling businesses, according to the sources. Mainichi Japan also reported the developments.