Japan is facing a major challenge after the United States, under President Donald Trump, decided to impose a 25% tax on car imports. This decision, announced by the US government, is expected to hurt Japan’s economy significantly.

Japanese Prime Minister Shigeru Ishiba said on Thursday Tokyo will put "all options on the table" in dealing with Washington's announcement to impose a 25% tariff on automobile imports.

After embracing the return of a once staunch ally, Japan’s car makers now find themselves on the front line of the trade war despite huge investments in the US.