Nearly 40 percent of Japanese prefectural governments are offering or have decided to offer financial assistance to businesses as the economy feels the impact of tariffs imposed by the United States, a Kyodo News survey showed Tuesday.
Currently, 18 out of Japan’s 47 prefectures have moved to offer such assistance to small and medium-sized firms as well as agriculture, forestry and fisheries operators, with nine more prefectural governments considering providing aid, according to the survey.
Of the 18, 15 are providing financial support, while three said they will start providing support in the near future, as concerns grow over the repercussions of the tariffs by U.S. President Donald Trump’s administration on industries such as auto and semiconductor manufacturing, and rice production.
Photo taken from the Cabinet Secretariat’s website shows Japanese economic revitalization minister Ryosei Akazawa (front L) holding talks with U.S. President Donald Trump (far R) in Washington on April 16, 2025. (Kyodo)
Meanwhile, 90 percent of prefectures have established consultation channels for businesses to give advice on matters including cash management.
All 47 prefectures responded to the survey in late April.
Tottori Prefecture in western Japan said it has established a specialized loan scheme offering up to 3 billion yen ($21 million) for small and medium-sized enterprises that have experienced a decrease in sales due to the tariffs.
Fukuoka Prefecture in the country’s southwest has also created a specialized loan program, which will come into effect on Thursday.
All prefectural governments responded that they are “concerned” or “somewhat concerned” about the impact of tariffs on the local economy.
In addition to asking the central government to persist with negotiations with the United States, many prefectural governments are seeking financial aid for small and midsize businesses and diversification of their export destinations, according to the survey.
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AloJapan.com