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Japan-US trade deal could lessen impact on Japanese automakers by $11bn

Japan-US trade deal could lessen impact on Japanese automakers by $11bn

Nikkei Asiaa day ago
Some automakers, including Honda, are moving production of some vehicles from Japan to the U.S. to mitigate the impact of tariffs. © Reuters
RYOSUKE HANADA
TOKYO -- The new Japan-U.S. trade deal reduces the tariff burden on Japan's seven big automakers by an estimated 1.6 trillion yen ($10.9 billion), but the 15% duties they now face -- while down from the 27.5% imposed earlier this year -- remain far higher than the 2.5% they saw before President Donald Trump started imposing new tariffs.
In April, Trump added 25 percentage points to the basic 2.5% U.S. tariff rate on imported cars. Japan exported nearly 1.37 million automobiles to the U.S. in 2024, accounting for more than 30% of the country's auto exports, the Japan Automobile Manufacturers Association reports.
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