Japanese automakers face a critical moment as export prices to the U.S. plummet

Despite the Japanese government's designation of the removal or reduction of automobile tariffs as a "top priority" during months of Japan-U.S. tariff negotiations, the ultimate outcome was the announcement that the U.S. would impose a new 25% tariff starting August 1. Bloomberg reported on the 11th that Japanese automakers are significantly lowering the prices of cars exported to the U.S. at a record pace. In the face of U.S. President Trump's tariff strikes, Japanese car companies are sacrificing profits to maintain competitiveness. A report from The Japan Times on the 11th suggested that this strategy could weaken demand and further squeeze the profits of Japanese companies. The current situation is extremely severe for Japanese automakers. According to the corporate price index released by the Bank of Japan on the 10th, the export price of passenger cars from Japan to North America was 86.8, a year-on-year decrease of 19.4%, marking the second consecutive month of nearly a 20% decline, the largest drop since 2016