The Japanese government and ruling parties are considering drafting a supplementary budget for the current fiscal year that started in April to mitigate the fallout from U.S. President Donald Trump’s aggressive tariff policies, sources close to the matter said Monday.
Prime Minister Shigeru Ishiba is expected to order the compilation of the budget, possibly by the end of the month, aiming to have it enacted during the current parliamentary session through June, the sources said.
The move comes just a week after the state budget for fiscal 2025 was passed by the parliament one day before the new year started as Ishiba’s minority government struggled to gain support from opposition forces.
Ishiba said it will be necessary to implement measures similar to those introduced during the COVID-19 crisis such as virtually interest- and collateral-free loans to small businesses.
As Trump has imposed an additional 25 percent tariff on imported cars since Thursday, the government is considering strengthening measures to boost demand for electric and fuel-efficient vehicles to support the auto industry, the sources said.
Under the envisioned extra budget, the government is also looking to provide financial support to companies likely to be negatively affected by the higher levies to help them maintain their workforce.
It is also considering reintroducing subsidies to keep households’ electricity and gas bills from rising sharply, as they continue feeling the pinch of the cost-of-living crisis, the sources said.
© KYODO
© Japan Today
