Trump’s Car Tariff Warning Sparks Growing Concerns in Japan

Japan Faces Growing Uncertainty Over Potential Impact of U.S. Car Tariffs

In a series of statements, U.S. President Donald Trump has expressed a growing intent to implement tariffs on imported cars, including those from Japan. These remarks have triggered widespread concern in Japan, as the country tries to avoid the impact of such tariffs. While Japan successfully navigated tariff pressures during the U.S.-Japan summit on February 7, 2025, the renewed threat of tariffs has caused apprehension.

On February 13, President Trump criticized Japan’s automotive market, saying that although the tariffs are relatively low, structural barriers to U.S. exports remain high. A day later, when asked about the timing of a potential car tariff implementation, Trump responded, suggesting that it could happen around April 2, 2025. This statement intensified worries in Japan, where the automotive industry plays a crucial role in the economy.

Reports by Kyodo News indicate that if Japan’s automotive exports are subject to tariffs, it would lead to a significant blow to Japan’s car industry. Japanese manufacturers currently export cars made in Canada and Mexico to the U.S., and if tariffs are imposed on these regions as well, the impact on Japan’s export market would likely be even more severe.

However, some analysts, such as those from the Nikkei, caution that Trump’s remarks about car tariffs are still unclear. While he mentioned plans to discuss tariffs in April, it is uncertain whether this is simply an announcement or the actual implementation of these tariffs. The uncertainty also extends to Trump’s broader push for reciprocal tariffs, which he has been promoting for a while, especially regarding Japan’s trade practices.

In 2023, Japan exported 1.485 million cars to the U.S. While this seems significant, it is important to note that Japan imported only 311,000 cars during the same period, of which 63,000 were vehicles produced abroad by Japanese manufacturers. The disparity in trade volumes raises concerns about the trade imbalance between the two countries, which the U.S. has long pointed out.

The U.S. government has increasingly focused on addressing the trade imbalance, which includes pushing for the removal of non-tariff barriers to U.S. car exports. According to Asahi Shimbun, the U.S. has criticized Japan’s strict safety and environmental standards, which it claims hinder the entry of U.S. cars into the Japanese market. Additionally, Trump has repeatedly argued that Japan’s favorable regulations for its own manufacturers and the weaker yen disadvantage U.S. carmakers.

This shift in U.S. trade policy could have far-reaching effects on the global automotive market, and Japan’s auto industry is closely monitoring the situation, particularly as the potential tariffs could alter their competitive standing in the U.S. market. With tensions running high, Japan will likely continue to seek diplomatic avenues to mitigate the risks posed by these tariffs, as the country works to balance its trade relations with the U.S. amid growing protectionist pressures.