1 Year On, Trump Tariffs Continue Battering Japan Automakers

Tokyo, July 20 (Jiji Press)--A high tariff policy introduced by the administration of U.S. President Donald Trump continues to cripple Japanese automakers.

In July last year, the Japanese and U.S. governments agreed that the U.S. tariffs on products from Japan would be reduced from the level initially announced by Trump in exchange for an expansion in Japanese investments in the United States.

The tariffs on Japanese automobiles were cut to 15 pct from 27.5 pct in September, but the revised rate is still far higher than the 2.5 pct before the inauguration of the second Trump administration in January 2025.

In fiscal 2025, which ended in March this year, combined costs from the Trump tariffs at six major Japanese automakers, including industry leader Toyota Motor Corp., exceeded 2.4 trillion yen.

There had been a prevailing view that Japanese automakers would unlikely face difficulties passing on the high tariff costs to American consumers because it is said to be easier to raise prices in the United States than in Japan.

[Copyright The Jiji Press, Ltd.]