Japan eyes cash handout to mitigate US tariff woes

ANKARA

Japan's ruling coalition is considering a plan to deliver a cash handout as part of a package aimed at allaying the impact of US tariffs and continued inflation on the country's economy, local media reported on Thursday.

Several ruling bloc lawmakers have come up with a plan to provide between 30,000 yen ($207) and 50,000 yen ($340), as US President Donald Trump's move to impose a 24 per cent reciprocal tariff on Japanese products took effect on Wednesday in addition to a 25% duty on cars.

Various lawmakers, however, remain cautious about the possible program due to questions such as who should be eligible and how to fund it, Tokyo-based Kyodo News reported.

The policy chief of the ruling Liberal Democratic Party, Itsunori Onodera, told reporters that the ruling bloc should thrash out details in a cautious manner.

"We'll enhance relevant discussions by listening to various opinions," said Onodera.

The chair of the party's Policy Research Council also told a TV program later in the day that the ruling camp and the government should make a decision on the possible cash handout plan "in a level-headed manner."

Japan has taken a hit from entrenched cost-push inflation, amplified by surging prices of rice, a staple food item, due largely to a poor harvest.

Analysts fear that higher US tariffs will hurt the local economy as Japan is heavily reliant on exports like cars.