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The United States has announced a reduction in tariffs on Japanese imports, a move that could bring significant relief to automakers like Toyota and Honda. According to Japanese tariff negotiator Rjosei Akazawa, beginning September 16, US trade policy will shift – tariffs on Japanese cars and auto parts will be cut from 25% to 15%.

How We Got Here: Trump’s Tariff Policy
In April, President Donald Trump imposed a 25% tariff on imports of cars and auto parts. Just three months later, he expanded that tariff to all Japanese products. The move strained relations between the two economies and threatened major consequences for Japan’s industrial sector.
By July, however, the tariff was lowered to 15%. The reason: Japan pledged a massive $550 billion investment in the United States, which American officials said would open new market opportunities for US companies – from aerospace and agriculture to food, energy, and automotive industries.
Trump later reaffirmed the revised policy in an executive order.

Impact on Automakers
The most significant hit was expected by Toyota, which in its August report projected that US tariffs would reduce operating profit in 2026 by 1.4 trillion yen ($9.5 billion). The company also cut its full-year profit forecast by 16%.
“It is frankly very difficult for us to predict what will happen given the market environment,” said CFO Takanori Azuma, while stressing that Toyota would continue to manufacture cars for American customers regardless of tariffs.
Honda issued a similar warning in August, estimating losses of 450 billion yen due to tariffs.
Even US companies were affected: General Motors reported in July that tariffs had cut its quarterly profit by $1 billion.

What This Means Going Forward
The reduction of tariffs from 25% to 15% represents crucial relief for Japanese automakers. Lower costs are expected to ease pressure on profit forecasts and production plans.
Politically, the move highlights the Trump administration’s effort to balance tough protectionist policies with pragmatic agreements. For American firms, the deal promises “breakthrough opportunities” in accessing the Japanese market.

#usa , #Tariffs , #TRUMP , #toyota , #Honda

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#Honda
Honda is studying the transfer of production of some of its cars from Mexico and Canada to the United States, aiming to manufacture 90 percent of the cars sold in the country locally in response to the new U.S. tariffs on cars.

According to Nikkei, Japan's second-largest automaker by sales plans to increase U.S. car production by up to 30 percent over the next two to three years in response to U.S. President Donald Trump's decision to impose a 25 percent tax on imported cars.