Japanese exporters are bracing for the potential impact of U.S. President Donald Trump's 25 percent tariffs on imports from Canada and Mexico, with some considering revisions to their production plans.
Nissan Motor Co, Toyota Motor Corp, Honda Motor Co and Mazda Motor Corp are among the companies that would be affected by the new tariffs, having exported a total of 870,000 Mexico-made vehicles to the United States in 2024, according to Mexico's National Institute of Statistics, Geography and Informatics.
Honda, which ships about 40 percent of its vehicles sold in the world's biggest economy from Canada and Mexico, expects the levies to have a financial impact of about 700 billion yen annually if the three countries impose 25 percent tariffs on each other's imports.
Honda Executive Vice President Shinji Aoyama has said the company is "considering changing the models it produces in each region" to minimize the negative impact.
A potential shift in production at automakers may force some of their suppliers to modify their manufacturing plans, as is the case for an auto parts maker in Shizuoka Prefecture, according to an official of the company.
Japanese chemical giant Asahi Kasei Corp said it is considering shifting some production from a planned battery material factory in Canada to the United States.
© KYODO
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WoodyLee
Why Not Make it in the U.S.A by the very same people who are buying your products!???
Problem Solved.
maxjapank
You could say the same to Trump and his family as most of their manufactured products were produced in China, Mexico, Bangladesh, Indonesia, and Vietnam.
garymalmgren
RE:Why Not Make it in the U.S.A by the very same people who are buying your products!???
Problem Solved.
That is exactly what Nippon Steel is trying to do, but the US side doesn't like that idea.
Desert Tortoise
American labor costs are too high and would make the cars uncompetitive price wise. Many of the plants in Mexico in particular build cars for more than just the US market. There would be large losses of economies of scale building separate plants, one in the US for the US market and the one in Mexico for the rest of the world.
WoodyLee
GREED is DEADLY,
Why Canada and or Mexico!??
Let Americans build these automobiles which they will end up buying and avoid all this headache.
JinJ
RE: Greed is deadly
The only ones being greedy in all this is Trump and his unqualified, crass minions
Ken
American car brands aren't selling too well in America these days Hyundai, Toyota and a few German car brands are selling a lot more. But hey its ways to screw your own economy out there now
kurisupisu
Japanese companies are largely invested in China and factory production in Japan is suffering and has done for years.
Trump’s tariffs are just going to accelerate Japan’s demise along with its other problems.
https://www.econotimes.com/Japans-Factory-Activity-Contracts-for-Eighth-Month-Amid-Trade-Uncertainty-1703460