Japan is making a strong effort to get an exemption from new US tariffs on automobile imports. Prime Minister Shigeru Ishiba said on Tuesday that his government is working to protect the economy and jobs from the potential impact of a 25% tariff.

Last week, US President Donald Trump announced plans for these tariffs and hinted at more trade restrictions against other nations. If Japan is not exempted, the country’s economy could face serious challenges.

To reduce the effects of these tariffs, Ishiba mentioned that the government is considering financial support for struggling businesses. He also stated that Japan is in talks with US officials to understand the details of the tariff plans. If needed, he is prepared to travel to the US again to push for an exemption.

With an upper house election coming up in July, Ishiba is under pressure to protect the economy from rising costs. Inflation in Japan reached 3.7% in February, one of the highest among advanced countries, mainly due to higher food prices.

Although large companies have agreed to raise wages this year, it is uncertain if smaller businesses can do the same, especially with the uncertainty caused by US tariffs. To support workers, Ishiba said the government will introduce measures by May to increase the minimum wage and help small businesses handle rising costs.

He emphasized that wage growth is a key part of Japan’s economic strategy and that the government will take action to ensure stability in the face of these trade challenges.