Tokyo: Following US President Donald Trump’s announcement to impose a 25 % tariff on auto imports next week, shares in Japan’s biggest car companies dropped on Thursday ( Mar 27 ).
Toyota, the top-selling car in the world, dropped 3.7 % as the Tokyo market opened, while Honda and Nissan both experienced declines of up to 3.1 %.
Hyundai stock dropped 3.4 percent while Mitsubishi Motors was over 3.7 % in South Korea.
About 10 % of jobs in Japan’s automobile industry are directly related to the field, which is a significant pillar of the country.
Around a third of Japan’s 21. 3 trillion yen ( US$ 142 billion ) of US-bound exports were vehicles in 2024.
Tokyo did consider” all options on the table,” according to Japanese Prime Minister Shigeru Ishiba.
” Japan is investing heavily in the United States. Additionally, it’s producing jobs,” Ishiba told congress.
We wonder if it makes sense for ( Washington ) to apply uniform tariffs to all nations because Japan is the country that is bringing in the most investment. We’ve been making that point and may proceed to do so,” he said.
At a press conference in Tokyo earlier in March, the head of the Japan Automobile Manufacturers Association ( JAMA ) made a warning about the effects of US trade protectionism.
A 25 % tax “would have a negative impact on the economy of the United States and Japan,” according to Masanori Katayama.
Chinese officials have been attempting to entice US counterparts to levy tariffs on items like cars and material, but these requests have been turned down.
Levies are a way for the Trump administration to push countries on US interests, increase government revenues, and revitalize American industries.
However, focusing on imported vehicles might strain relations with enlisted US lovers.
About 50 % of American automobiles are produced there. About half of exports are imported from Mexico and Canada, with key manufacturers even coming from Japan, South Korea, and Germany.