Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says


Japan's Prime Minister Shigeru Ishiba, wearing a formal attire, walks toward the upper house hall to attend an opening ceremony of the parliamentary session in Tokyo, Japan August 1, 2025. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -Japanese Prime Minister Shigeru Ishiba said on Monday the government is ready to compile an extra budget to cushion the economic blow from U.S. tariffs, a move that would add strain to the country's already worsening finances.

After suffering a stinging defeat in last month's upper house election, Ishiba's minority coalition is under pressure to heed opposition parties' demand to boost spending and cut Japan's sales tax.

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