Japan may replace Russian gas with US supplies in response to Trump's tariffs

Japan is considering increasing US natural gas imports to mitigate the impact of President Donald Trump’s newly announced 25% auto tariffs.

Prime Minister Shigeru Ishiba emphasized the need for "appropriate responses" to the decision, Caliber.Az reports citing Japanese media.

Ishiba stated that "all options will be on the table" in response to the unexpected move, which Japan views as a violation of a trade agreement made in September 2019 between Trump and then late-Prime Minister Shinzo Abe, which opened Japan's market to more American farm goods.

Japanese Chief Cabinet Secretary Yoshimasa Hayashi said the government intended to negotiate exemptions with the article, pointing to several options available to Tokyo. Economists suggest Japan could offer voluntary export curbs or increase US imports, including replacing Russian gas with American supplies. In 2023, 8.9% of Japan’s natural gas came from Russia, compared to 7.2% from the US. This shift could align with Washington’s geopolitical strategy while serving Japan’s energy security.

Despite Ishiba’s strong rhetoric, analysts believe Japan is unlikely to retaliate against the tariffs. Ishiba previously emphasized Japan’s role as a major investor in the US, pledging to raise Japanese investment from $783.3 billion to $1 trillion.

Japanese automakers have responded cautiously, balancing their US presence with concerns over the tariffs' impact on domestic operations. Autos make up Japan’s largest US export, valued at $40 billion and accounting for 28% of its total exports. Currently, the US levies tariffs of 2.5% on imported cars and 25% on trucks. When the new tariffs take effect on April 3, they will rise to 27.5% and 50%, respectively.

South Korea is also expected to seek exemptions, with South Korean automaker Hyundai’s recent $21 billion US investment potentially serving as leverage.

By Nazrin Sadigova