The impact of U.S. tariffs on the Japanese automotive industry

The United States is an important market for Japanese car exports, and the U.S. measure to impose a 25% tariff on imported cars has raised high alert across various sectors in Japan. According to statistics from the Japanese Ministry of Finance, in 2024, Japan's car exports to the U.S. will account for 28.3% of Japan's total exports to the U.S. Tariffs are usually borne by the importing party. If passed on to product prices, Japanese cars will face a price disadvantage when sold in the U.S. This will not only impact manufacturers like Toyota and Honda, but the ripple effects on the supply chain could further drag down Japan's overall economy. Since U.S. President Trump mentioned in February this year that he was considering imposing tariffs on imported cars, the Japanese government has repeatedly expressed its hope that the U.S. would exclude Japan from the relevant tariff measures, but to no avail