Japanese automakers scrambling over Trump's 25 % tariffs

If the tariffs are passed on to US consumers, they are likely to avoid buying cars.

Japan exports over 1.3 million vehicles to the United States per year, making up around 30 % of its auto exports on a value basis.

Toyota Motor Corp. exported around 550,000 units from Japan to the United States in 2024, followed by Subaru Corp. at some 290,000 units and Mazda Motor Corp. at about 220,000 units, according to research firm Marklines Co. Embattled carmaker Nissan Motor Co. exported 150,000 units, or roughly 4 % of its global sales, to the United States.

Ivan Espinosa, Nissan's chief planning officer, who is slated to become CEO next month, described the situation as being very fluid and said the firm will consider various scenarios to be able to respond to any situation.

A drop in exports to the United States is likely to force automakers to cut output in Japan, putting small domestic parts suppliers at risk of going out of business.

Major Japanese automakers plan to work with the industry ministry to assist such suppliers.

"We won't be able to recover if we lose parts suppliers," an executive at a major automaker said.

Industry Minister Yoji Muto told reporters Thursday that his ministry will "take all possible measures necessary, including overfinancing.

" If the levies remain in place for several years, automakers may be forced to move production to the United States, possibly hollowing out domestic industry.

At a press conference on March 19, Masanori Katayama, chairman of the Japan Automobile Manufacturers Association, signaled the industry's readiness to support the Japanese government in negotiating for an exemption from the tariffs.

"Japanese companies continue to make significant contributions to the US economy through investment and job creation," Katayama said. 

[Copyright The Jiji Press, Ltd.]

Photo by Reuters