Earlier this week, it came out that tech manufacturer and iPhone builder Foxconn was about to start building electric cars for a pair of Japanese automakers. The company has long wanted to reduce its dependence on the consumer electronics market and expand into some more serious manufacturing.

Japanese Prime Minister Shigeru Ishiba said he won’t rule out taking countermeasures against the Trump administration’s 25% tariff on US car imports.

A strong U.S. security ally with a large trade surplus, Japan has few options for retaliating against the tariffs. Instead, it is bracing for an economic hit.