Japan weighs its options as carmakers dealt a blow

US President Donald Trump's plan to levy a 25 percent tariff on imported cars and car parts starting next week is forcing the Japanese government to balance its commitment to the US-Japan alliance with the need to protect its economy, analysts say.

The tariffs are expected to worsen the earnings of Japanese automakers and deal a blow to Japan's economy, as automobiles make up Japan's largest export to the US, they said.

Their comments came after Japanese Prime Minister Shigeru Ishiba said on Thursday that Tokyo will consider an appropriate response to Trump's announcement and that he believes all options are on the table.