section_path: Trade conflicts by country/Asia/Japan
section_name: Japan
paragraph_text: Japan
  
  After receiving a 25% tariff on cars and car parts and a 24% tariff on other goods exported to the United States, Japan's Nikkei 225 stock market index fell by 7.8% on April 7, which was the third-largest single-day loss in its history. Since Japan is an export-heavy economy and Japan's large automotive sector depends on the United States for 20% of its total exports, Trump's new tariffs had a sizeable effect on the Japanese economy. Analysts estimate that the tariffs could decrease Japan's GDP by 0.8%.
  
  Prime Minister Shigeru Ishiba said tariffs were "extremely disappointing and regrettable." On April 7, Ishiba talked with Donald Trump by phone, asking the president to reconsider, but could not negotiate any concessions. Trump later wrote "He is sending a top team to negotiate!" on Truth Social.
  
  Various talks were held since then, however on May 5, 2025, the United States announced their refusal of "Japan's full exemption" from not only a 10 percent "reciprocal" tariff but also its country-specific tariff of 24%.