Trump tariffs to hit Japan's domestic auto output: industry head

"" Trump has said tariffs of around 25 percent on imported cars will likely be imposed on April 2, a significant increase from the current 2.5 percent. ""

That is one hell of an increase, hope the two sides will come to term and work things out.

 requiring production of Autos (Chips, Steel, Aluminum, Pharma, etc.) to eventually be produced in the US,

As noted in the article, in 2024 Japanese companies exported 1.37 million cars to the US.

But what wan't mentioned, in 2024 Japanese companies produced 3.3 million cars inside the US, at US based manufacturing plants, by US workers.

So of the Japanese cars sold in the US, about 29% were imported, and the other 71% were actually made in the US. This isn't new, its has been happening for decades

But does anyone know how many cars US companies make in Japan? I looked for those stats, but somehow couldn't find any.....

@WoodyLee 7.37am

How do you negotiate with an egomaniac and his yes men?

Japan is unfortunately in for a rough ride. It isn’t as well situated as the EU to fight back against US hostility, so it doesn’t have many good options here.

Its automakers in particular are in a weak position. They don’t have any alternative markets they can sell those excess domestically produced cars to if they can’t export them to the US (or at least can’t do so at a price that will make them competitive). Chinese producers are starting to really dominate the market in Asia and South America with cars that are simply way cheaper than Toyotas or Hondas. And they can’t expect sales in the EU to grow much either.

Expect a backlash and Japanese consumers to start joining the international boycott of the US once those plants start shutting down.

Nothing to work out, Trump's 'reindustrialization' and 'reciprocal' tariffs are ones he promised on the campaign trail and is now delivering. Nobody's surprised, especially Union & working-class voters who supported DJT in Nov.

In reality, Trump simply copying China, India and others, demanding production take place in home or domestic market for things like autos, steel, chips, aluminum, pharma etc. for jobs, wealth creation & national security.

President Trump is doing what he promised and what the majority of Americans voted for in November. Japan needs to grow up and start working out policy of its own to deal with the world.

technology has advanced, but the species remains the same - tribalism, slaughter, etc.

With, or without USA tariffs, the decline of Japan's industries are accelerating. Don't blame USAa President Trump.

Japan's auto industry grew and flourished under Japan's own economic protectionism, so they don't really have a leg to stand on when it comes to criticising the US for doing the same.

Besides, Japan Auto Makers by Reshoring to US can access cheaper material resources, eliminate need for shipping, gain more favorable regulatory conditions, lower corp. taxes, no tariff risk, and lower energy costs...

What's NOT to LIKE about Above Scenario?!?!

But does anyone know how many cars US companies make in Japan?

Answer: zero.

People forget that Japan is the largest foreign holder of U.S. debt. Just tell Trump it's time to pay up—I’m sure he’ll get the message. Or start selling off holdings and slow down future Treasury bond purchases.

Boycott American products don't go to , Costco, cancel Netflix, cancel your X account, don't buy Tesla cars, minimize purchases from Amazon, Kentucky Fried Chicken, Dunkin Donuts, Starbucks etc.... the list is endless, use your imagination for items from America that you can do without.

@ Coulda been

How do you negotiate with an egomaniac and his yes men?

Why negotiate when you can (or at least try) to dictate terms? and anyway, ain't that better than having the prior cardboard of a president and the "who knows what interest are at heart" swamp behind him?

@Michael Hooper

While at it, go for Disney, McDonalds, Pepsi, Coke, Microsoft, Apple, Spotify and Goggle.

And go full heartedly please.

The headline deserves a PhD in the blindingly obvious

rainydayToday  09:42 am JST

Its automakers in particular are in a weak position. They don’t have any alternative markets they can sell those excess domestically produced cars to if they can’t export them to the US (or at least can’t do so at a price that will make them competitive). 

Disagree. You assume that the imported cars will not sell in the U.S.

One, even if that 30% of cars Japan exports to the US gets hit with the 25% tariff rate, so do BMWs, VWs, GMs, Fords, Stellantis and Kia who manufacture in Mexico and Canada. We are going to see higher sticker prices across the board for many brands. Two, many Japanese cars are held in such high esteem by American consumers that they will still pay the new sticker price, especially when all the others have risen also.

Domestic production, often termed localization has been a growing trend for decades across the world. DJT simply joining this movement in a full-throated manner.

US Auto tariff imports will likely increase from 25% baseline and match far higher rates in China, India, etc.

How many Japanese cars are made in America?

In 2024, Japanese automakers manufactured roughly 3.28 million vehicles at production facilities in the United States.

How many Americans work at Japanese car factories?

1.36 Million American Jobs.

How many American cars are made in Japan?

Ford pulled out of Japan in 2016.

How many American-made cars are sold in Japan?

Vehicles from the US represented less than 1% of total passenger cars sold in Japan in 2023.

Currently, Japan doesn't impose tariffs on imported cars, trucks, or buses, including those from the U.S. However, the U.S. does levy tariffs on Japanese vehicles, with a 2.5% rate for passenger vehicles and 25% for trucks.

America continues to isolate itself and dig its own grave. Not surprising considering they have a Manchurian candidate that’s goal is to run America into the ground.

One must remember that's Trump pending Reciprocal Tariff calculation will also takes into account often HUGE Non-Tariff Barriers, great example being EU's High VAT Tax

Japan attracts FAR less FDI as a % of GDP than its peers in the G-7 etc., and non-tariff barriers and domestic subsidies, like "free" business loans and share purchases by the BOJ a big reason why = rigged market

Japan is good friend to America so this is unfortunate decision by president Trump. It's true that we also have high tariffs and tax on overseas products here, especially food. I hope for lower tariffs and cheaper food products in Japan supermarkets.

Agreed, Japan could and should open up its markets to help consumers with affordability and increase market access opportunities overseas for the business community!

when you distill this down to its most basic, the only person who like these trump tariffs is trump.

economists don’t, businesses in consumer goods don’t, anyone who does just because trump does is not thinking.

A lot of countries are hitting back, Canada has removed all of the alcohol products from the shelves and products, and anything that is sold to the USA has higher costs, what junk does Japan buy from the USA? What ever is imported slap it with huge import tax, any ( only ) American tourists that visit Japan charge them with a $50 per person administration fee for entering Japan,

World can't really hit back very well, because it's the US running a $Trillion-dollar annual trade deficit.

What's so unfair about 'reciprocity' regarding trade tariffs and non-tariff barriers? Equal treatment seems FAIR!

trade deficits made america companies rich by increasing margins and not reducing prices.

for example, when america still made clothing, markup was about 7 times cost. retailers bought for $7 and sold for $49. today, retailers buy from overseas for $7 and sell for $120.

the u.s. move to a service economy is not going to reverse to a manufacturing economy. the u.s. has lost manufacturing knowhow, and it would only send inflation skyrocketing. not many americans are going to work for $5 per day.

unless you collapse the economy and make them do it, returning to the 1700’s, which is when america was great?

What ever is imported slap it with huge import tax, any ( only ) American tourists that visit Japan charge them with a $50 per person administration fee for entering Japan,

Brian Wheway, I would gladly pay $50 to visit Japan if it's to support the Japanese economy. But not because of Trump's tariffs. Why punish Americans that want to spend money in Japan? I would like to travel to Canada and spend money show my support. The more we help the countries that are (or should be) our friends, the better. And hopefully, the pain the US will endure over the next four years will cause enough people to get this idiot out of office.

two dozen nobel prize economists signed a letter to trump telling him he’s wrong about tariffs. his tariffs will destroy the middle class,

i doubt he read it,

Japan's auto industry grew and flourished under Japan's own economic protectionism, so they don't really have a leg to stand on when it comes to criticising the US for doing the same.

Bingo, mic drop!

Tariffs do not matter, Korean cars have flooded the American market and consumers like the price point, reliability and style of these automobiles. Japan is slowly losing the American marketplace.

Wen trump puts tariffs on, expel the Ambassador and shut down the Embassy.

This potential economic hit from the USA paired with flagging Japanese auto sales in China will create a huge upheaval in the Japanese auto industry and likely recession.

@OssanAmerica I don't see many $40,000 Corollas driving of of Toyota dealerships but keep waving the 日の丸.

Trump wants reciprocal tariffs. This is not rocket science. US has been taken advantage by globalist, one worlders, who do not care about sovereignity of nations. Especially USA and Japan. Be careful picking your leaders who have hidden globalist agendas

Want to sell in the US?

Then make it in the US-simple!

Kurisupisu, it's not that simple, if your a manufacturer in x country, quite often the it's specialised and sensitive, it will be difficult to close the plant, dismiss the trained staff, dismantle the equipment, put it in a container and ship it to the USA, then set the whole plant up, and train the staff etc, the cost of this is horrendous, would you invest all of the time, finance, hassle to do this and have the thought that your plant is out of opporation for months, bare in mind that Mr Trump might be only in power for 4 years, or would you carry on as normal making money and no hassle, and the extra import costs are just passed onto the end consumer.