Foreign residents working in Japan's automotive and manufacturing sectors are facing an uncertain economic landscape as US tariff measures significantly impact the country's major industries. Recent financial reports from Japanese automakers reveal substantial profit declines, prompting the government to develop comprehensive economic countermeasures focused on strategic industries. According to NHK, Japanese automaker SUBARU reported a net profit of 90.4 billion yen for the six-month period from April to September 2025, representing a decline of more than 40 percent compared to the same period last year. The company directly attributed this sharp decrease to the impact of tariff measures implemented by the Trump administration. SUBARU's results reflect a broader trend affecting Japan's entire automotive sector. The mid-term financial results released by major Japanese automakers show that US tariff measures have uniformly depressed operating profits across the industry. The tariffs have created a challenging environment for companies that rely heavily on the American market, which has traditionally been one of Japan's most important export destinations. Beyond automotive manufacturers, the semiconductor industry has also experienced ripple effects from these trade policies, according to industry reports. Despite these headwinds, Keidanren Chairman Tsutsui indicated at a November 10 press conference that Japanese businesses remain committed to wage increases in the upcoming spring labor negotiations. "While there are uncertainties due to American tariff measures, considering price trends, we will continue calling for further establishment of wage increases," Tsutsui stated. This commitment is significant for foreign workers in Japan, as it suggests that employment conditions may remain stable despite external economic pressures. The Japanese government is responding to these challenges with a comprehensive economic strategy. According to NHK, the government is coordinating a new economic policy package that emphasizes economic security while pursuing a "strong economy." The plan includes substantial support for AI and semiconductor technology development, along with fundamental strengthening of Japan's shipbuilding capacity. These initiatives aim to reduce dependency on vulnerable supply chains and enhance domestic industrial capabilities. The Liberal Democratic Party has formulated policy recommendations for the new economic measures, emphasizing the need to "reliably advance economic structural transformation" to prevent a return to deflation. The proposals prioritize investment in AI, semiconductors, and other strategic sectors identified as crucial for Japan's economic future. On November 10, the government's Japan Growth Strategy Council held its inaugural meeting, bringing together experts to identify priority policies from among 17 previously designated strategic fields. These fields include AI, semiconductors, and shipbuilding, which the government considers essential for long-term economic resilience. The priority measures identified during this meeting will be incorporated into the forthcoming economic policy package. For expats working in affected industries, these developments carry several implications. Companies in the automotive sector may face restructuring pressures or shifts in production strategies as they adapt to the tariff environment. However, the government's focus on high-tech sectors like AI and semiconductors could create new employment opportunities for skilled foreign workers in these fields. The emphasis on economic security and domestic capacity building suggests that Japan is preparing for a prolonged period of trade uncertainty. Foreign residents should monitor their employers' strategic responses to these challenges and stay informed about government support programs that may affect their industries. While the current situation presents challenges, Japan's commitment to maintaining wage growth and investing in future-oriented industries indicates a determination to weather this economic storm. Expats should remain attentive to how their specific sectors are positioned within the government's strategic priorities, as this will likely influence long-term employment prospects and career opportunities in Japan.