US President Donald Trump on Wednesday announced an additional 25 percent tariff on imported autos and some parts.



Trump said: "We'll effectively be charging a 25 percent tariff. But if you build your car in the United States, there is no tariffs."



The president's executive order takes effect on April 2. Levies will be collected starting the following day. The order cites Section 232 from a 1962 law that allows a president to restrict imports that threaten national security. Trump also said the step will be permanent.



The US president has repeatedly said that factories and jobs are moving overseas because of vehicle imports, and that he would impose tariffs to boost domestic production. White House officials say the measure will generate about 100 billion dollars per year in revenue.



The levy is expected to have a major effect on Japan's economy. Japanese vehicle exports to the US in 2024 amounted to 40 billion dollars, and accounted for 28.3 percent of all exports to the country -- the biggest single portion.



Currently, the US imposes tariffs of 2.5 percent on cars imported from Japan. The increase is likely to push up prices and drag down sales.



Prime Minister Ishiba Shigeru said Japan will carefully consider its response. He said all options will be on the table, including countermeasures.



Ishiba said: "We need to think about what would best serve our country's national interest. We are strongly requesting Washington to get Japan exempted from its new levy of 25 percent."



Ishiba said Japan has made substantial investments in the US that have created jobs there.



He said his government will continue to ask White House officials whether the levies must be uniformly enforced on all countries. Ishiba added that he sees a growing understanding by the US president.