Japanese automakers are hoping the government can somehow persuade the Trump administration to exempt Japan from planned 25 percent tariffs on imported vehicles, which could have an enormous impact on the companies.

Automotive products account for 30 percent of Japan’s exports to the United States, and many of the finished vehicles sold in the U.S. market come from Japan, Mexico and other countries.

The Trump administration also announced plans to increase tariffs on steel and aluminum imports, but such products account for only about 1 percent of Japan’s exports to the United States.

Trade minister Yoji Muto plans to visit the United States in March to seek an exemption from the tariffs, sources said.

“First, we will closely examine the specifics of the measures that will be revealed and their impact on Japan,” Muto said on Feb. 18.

A senior trade ministry official said there was no need to panic.

U.S. President Donald Trump earlier this month held off on imposing blanket tariffs on Canada and Mexico.

“It is not like (Trump) pointed a finger at Japan,” the official said. “It is not even clear that (the U.S.) will really impose the extra tariffs in April.”

But Japanese automakers are still bracing for the impact, and at least one is already taking countermeasures.

TOYOTA

For Toyota Motor Corp., the United States accounts for about 20 percent of its global sales.

Of the 2.33 million vehicles that Toyota sold in the United States in 2024, 530,000 were imported from Japan.

According to research firm S&P Global Mobility, imported vehicles accounted for 44 percent of all vehicles sold by Toyota in the United States in 2023, including those manufactured in Canada and Mexico.

If Trump goes through with his plan, about 1 million Toyota vehicles will be subject to the 25 percent tariff and cost more in the U.S. market.

Toyota’s sales performance has been improving with hybrid vehicles, its forte, but the new tariffs could hurt the automaker’s competitiveness.

“People will buy luxury cars like Lexus, but they won’t buy mass-market cars,” a Toyota official said of the tariffs.

MAZDA

Mazda Motor Corp. sold about 420,000 vehicles in the United States in 2024, and about 230,000 of them, or more than half of the total, were imported from Japan.

If the number of vehicles exported to the United State from Mazda’s plant in Mexico is included, about 70 percent of Mazda vehicles sold in the U.S. market could be subject to the 25 percent tariff.

“We are currently reviewing all possible options and preparing to take the most appropriate countermeasures,” a Mazda spokesperson said.

HONDA

Honda Motor Co. has already begun to respond.

“We are taking short-term measures to bring (production in Canada and Mexico) to the United States by the end of February as much as possible,” Shinji Aoyama, executive vice president of Honda, said at a Feb. 13 presentation of the company’s financial results.

Honda has already calculated the potential impact of a tariff increase.

About 550,000 Honda vehicles produced in Canada and Mexico are sold in the United States annually.

Conversely, the United States exports about 60,000 Honda vehicles a year to its North American neighbors.

The unit price of these 610,000 vehicles is about $30,000 (4.55 million yen).

If a 25 percent tariff is applied to the imported vehicles, “you will see the impact on finished vehicles,” said Eiji Fujimura, managing executive officer of Honda.

Toshiki Takahashi, chief researcher at the Institute for International Trade and Investment, said, “If a tariff of 25 percent is imposed, Japanese manufacturers may have no choice but to move their production bases in Mexico and other countries to the United States.”

TRADE SPAT REKINDLED?

Trump may also take issue with the Japanese auto market regarding the U.S. trade deficit with Japan.

The United States has long complained about sluggish sales of U.S. vehicles in Japan.

According to the Japan Automobile Importers Association, Japan imported 18,958 U.S.-brand automobiles, including buses and trucks, in 2023.

This is less than 8 percent of all foreign-brand vehicles brought into the country that year and represents only 0.4 percent or so of the total domestic market.

Japan does not impose tariffs on imported automobiles.

However, the U.S. side has argued that “non-tariff barriers,” such as differences in safety standards, are the reason for the slow sales of U.S. vehicles in Japan.

The Trump administration may strengthen this argument.

(This article was written by Chihaya Inagaki, Kaname Ohira and Akifumi Nagahashi.)