Japanese car lobby warns of production changes due to US tariffs
- Masanori Katayama highlighted concerns about potential US tariffs on cars effective April 2, 2025.
- Major Japanese automakers face challenges in adjusting production schedules to mitigate tariff impacts.
- The Japanese automobile industry is lobbying the government for tariff exemptions while developing contingency plans.
In Japan, on March 19, 2025, Masanori Katayama, the chairman of the Japan Automobile Manufacturers Association (JAMA) and Isuzu Motors, addressed the looming threat of car tariffs proposed by US President Donald Trump set to take effect on April 2, 2025. The tariffs could require significant adjustments from Japanese carmakers and suppliers in managing their production schedules. Katayama emphasized the importance of avoiding the tariffs, noting that it is essential for the industry's stability. Discussions are underway regarding potential strategies the automotive sector and the government could employ to mitigate the impact of the tariffs if they are implemented. The proposed tariffs are a significant concern, as the US is the primary market for major Japanese automakers, including Toyota, Honda, and Nissan. These firms manufacture popular models in Canada and Mexico, making them particularly vulnerable to the potential tariffs. Smaller car manufacturers, like Subaru and Mazda, also face risks associated with these tariffs. Insiders mention that Honda has preemptively decided to relocate production of its next-generation Civic hybrid from Mexico to Indiana to evade the tariffs imposed on this best-selling model. Japan's automobile industry has been lobbying the government to negotiate exemptions from the proposed tariffs. Before the trade minister's US trip in March, the Japanese automobile association urged him to seek assurances from Washington that Japan would not be subject to the tariffs. This lobbying effort comes in the wake of increased duties on steel and aluminum, raised to 25 percent, which already act as a financial strain on these industries without any exemptions. The implications of these tariffs could drive a wedge into the already complex supply chains of vehicle production between Japan and North America. The potential changes to production schedules will vary among manufacturers and their respective products, implying that a one-size-fits-all solution will not suffice. As the automotive sector seeks clarity from the US about the tariffs, the need to develop contingency plans becomes increasingly clear. As the deadline of April 2 looms closer, automakers in Japan are weighing their options to respond strategically to protect their interests and continue catering to the substantial US market.