Japan auto lobby says US tariffs may lead to production adjustments among firms

By Alimat Aliyeva

TOKYO – The chief of Japan’s auto lobby warned that the potential implementation of auto tariffs, proposed by U.S. President Donald Trump, could force automakers and suppliers to make significant adjustments to their production schedules, with the tariffs possibly set to take effect on April 2, Azernews reports.

“For us, avoiding tariffs is a matter of course,” Masanori Katayama, chairman of the Japan Automobile Manufacturers Association (JAMA) and truck maker Isuzu Motors, told reporters during a press conference on March 19.

“But if that is difficult because of the timing, we would like to start discussing what the public and private sectors can do to deal with the situation as the next best option, and we are already talking about that,” he added.

Japan’s automobile association has been actively lobbying the Japanese government over the looming tariff threat. Before the Japanese trade minister’s visit to the U.S. in March, the association requested that the minister push for an exemption from the tariffs.

Unfortunately, Minister of Economy, Trade and Industry Yoji Muto did not secure any assurances from Washington that Japan would be exempt from the tariffs.

In the past week, President Trump raised duties on imports of steel and aluminum to 25%, which took effect without any exemptions or exceptions. The vehicle and auto parts tariffs could follow as early as April 2.

The U.S. remains the largest market by vehicle sales for automakers such as Toyota, Honda, and Nissan, which manufacture some of their most popular U.S. models in either Canada or Mexico. Smaller firms like Subaru and Mazda are also at risk.

Mr. Katayama emphasized that any production adjustments made by manufacturers in response to the U.S. tariffs would vary depending on the company and product, though he did not go into further detail.

Katayama’s comments are the latest sign of the difficulties Japanese automakers and suppliers face in adapting to the potential new U.S. tariffs.

In response to the looming tariffs, Honda has already decided to shift production of its next-generation Civic hybrid to the U.S. state of Indiana, instead of Mexico, to avoid the potential tariffs on one of its top-selling models, sources familiar with the plans told Reuters earlier in March.

The potential tariff impact has broader implications for the auto industry. If enacted, the tariffs could force automakers to either raise vehicle prices or adjust their production strategies, potentially leading to disruptions in the global supply chain. Japan’s response may also include increasing lobbying efforts in Washington to seek a broader exemption or mitigate the long-term impact on their industry. Given the U.S. market’s importance to Japanese car manufacturers, any prolonged tariff dispute could disrupt sales and shift production dynamics significantly.