The Japanese government has expressed its dismay at US President Donald Trump's announcement that all vehicles imported into the US will be subject to a 25% tariff from April 2.

Prime Minister Shigeru Ishiba has called on Washington to exempt Japanese car makers from the levy, which would come on top of the 2.5% existing duty.

If Tokyo is unable to convince Trump to reduce his demands, then car manufacturers and the broader Japanese economy could feel some pain.

"The overall impact on business here in Japan will be serious," said Martin Schulz, chief policy economist for Fujitsu's Global Market Intelligence Unit.

"Almost one-third of Japan's exports are autos or in related sectors and, put together, the industry accounts for 8% of overall employment here," he told DW, adding that the tariffs are poised to shrink the Japanese economy by 0.2%.

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video

"When prices go up by more than a quarter because of these tariffs, the question becomes who will swallow those added costs," Schulz said.

"We will see a........

© Deutsche Welle