The government said Tuesday that it will provide subsidies to lower household electricity and city gas bills as part of efforts to cushion the impact on the domestic economy of U.S. President Donald Trump's high tariffs.
The government will spend ¥388 billion from its budget reserves for the subsidies and other measures, in its first fiscal spending in response to the Trump tariffs, as officials are concerned the U.S. trade measures will weigh on the Japanese economy.
"The impact of the tariffs is emerging in some sectors" of the economy, Prime Minister Shigeru Ishiba told officials in a meeting.
Of the total, ¥288 billion will be spent to lower the cost of electricity and city gas by ¥3,000 for an average household from July to September.
The subsidies will be ¥2 per kilowatt-hour of electricity and ¥8 per cubic meter of city gas in July and September. In August, when bills tend to rise due to air conditioning use, the subsidies will be raised to ¥2.4 per kilowatt-hour of electricity and ¥10 per cubic meter of city gas.
The government will also increase subsidies to local municipalities working to reduce electricity and liquefied propane gas bills for businesses. It will also promote funding support to businesses from government-backed lenders.
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