The package includes support for corporate financing as well as subsidies to lower gasoline prices by ¥10 (US$0.07) a litre and partially cover electricity bills for three months from July, a government document showed.

To help small and mid-sized companies more vulnerable to economic swings, a larger scope of firms will be eligible for low-interest loans extended by government-backed banks.

“I have instructed cabinet members to make the utmost efforts to aid firms and households that have been worried about the tariff impact,” Ishiba said at a tariff task force meeting.

“Tariffs could have a significant impact on industries that support the economy such as automobiles and steel,” he said.

The government will consider additional measures to boost domestic consumption depending on the impact of US tariffs on Japan’s massive automotive industry.

“Today’s package could be financed by a reserve fund, eliminating the need to compile an extra budget,? said economy minister Ryosei Akazawa.

US President Donald Trump on April 2 introduced a 25% tariff on car and truck imports.

He also announced a 24% tariff on all Japanese goods, later cutting that to 10% for 90 days.

Akazawa, who serves as Japan’s top trade negotiator, will visit Washington next week for a second round of trade talks.

The Nikkei business daily reported yesterday that Japan is considering increasing soybean imports from the US as part of negotiations.