METI Establishes Task Force for U.S. Tariffs, Opens Special Consultation Counters, Provides Cash Flow Support, etc. in the Short Term in Response to the Execution of Additional U.S. Tariff Measures on Automobiles and Announcement of Reciprocal Tariffs

The automobile industry is the backbone of Japan’s industries, accounting for 20% of their domestic shipment value. Its supply chain, including auto parts manufacturers, is extensive. METI will thoroughly examine the impact of tariff measures on Japan’s domestic industries and make every effort to provide the necessary support.

Today, METI has established the Task Force for U.S. Tariffs within the ministry for the purpose of advancing negotiations with the United States for excluding Japan from the list of countries subject to tariff measures, protecting Japan’s industries and employment from the tariff measures by assessing their impact, and swiftly implementing the necessary domestic measures.

In addition, in response to the actual execution of additional tariff measures on automobiles today, along with the announcement of reciprocal tariffs imposing additional duties on a wide range of goods exported from Japan, METI is implementing the following concrete support measures in the short term.

1. Establishment of special consultation counters

METI has established today special consultation counters associated with the U.S. automobile tariff measures and so forth at the Regional Bureaus of Economy, Trade and Industry, government-affiliated financial institutions nationwide, associations of commerce and industry, the Organization for Small & Medium Enterprises and Regional Innovation, and elsewhere as contacts for providing advice and support to companies that are concerned about the impact of additional U.S. tariff measures on automobiles and suchlike, such as auto parts manufacturers. (Refer to Appendix 1 for the list of consultation counters.)

2. Relaxation of requirements for safety net loans

The requirements for safety net loans provided by Japan Finance Corporation and others have been relaxed today to expand the scope of eligible loan recipients to include business operators subject to the impact of additional U.S. tariff measures on automobiles and so forth.

3. Requesting public and private financial institutions to support companies seeking financial consultation

Along with the Financial Services Agency, Ministry of Finance, and others, METI requests public and private financial institutions to provide meticulous financial support to small and medium enterprises that are subject to the impact of the tariffs with the aim of preventing serious problems with cash flow and other matters. (Refer to Appendix 2.)

4. Support for capital procurement and so forth provided by Nippon Export and Investment Insurance (NEXI)

NEXI will respond to the funding needs of Japanese companies’ subsidiaries conducting business activities in North America and other regions that will be subject to the impact of the import tariff measures by helping them procure working capital. In addition, loss caused by the tariff measures will be eligible for coverage by export insurance. Announcements will be made by NEXI as soon as details have been decided.

The release by NEXI is here.

Related Materials (in Japanese)

• Short-term support measures in response to the execution of U.S. tariffs on automobiles(PDF:1,062KB)
• (Appendix 1) Special consultation counters associated with U.S. automobile tariff measures(PDF:257KB)
• (Appendix 2) Letter of request (Request for support from financial institutions in view of the impact associated with the U.S. automobile tariff measures)(PDF:115KB)

Divisions in Charge

• About Task Force for U.S. Tariffs and 1. Establishment of special consultation counters

  Policy Planning and Coordination Division, Manufacturing Industries Bureau Automobile Division, Manufacturing Industries Bureau Office for Business Stability, Small and Medium Enterprise Agency

• About 2. Relaxation of requirements for safety net loans

  Finance Division, Small and Medium Enterprise Agency

• About 3. Requesting public and private financial institutions to support companies seeking financial consultation

  Finance Division, Small and Medium Enterprise Agency

• About 4．Support for capital procurement provided by NEXI

  Trade Finance Division, Trade Policy Bureau