I recognize that the impact that this will have on the economy will be very big, — said the country's Prime Minister Shigeru Ishiba on Friday. Exports are a major driver of Japan's economic growth. — We will take all possible measures so that this won’t affect domestic industries or employment,

While the president has threatened to ratchet up duties against both in recent weeks, he has yet to take direct aim at them.

Arthur Laffer says the industry would be in a better position if the president preserved the supply chain rules with Canada and Mexico from the USMCA.