Japan’s automobile industry association has urged the government to seek a U.S. tariff exemption, requesting Japanese cars be excluded from any potential tariffs the U.S. may impose on auto and auto part imports.
On Tuesday, Economy, Trade, and Industry Minister Muto Yoji met with representatives from the automobile, steel, and aluminum industries. These meetings were held in response to U.S. President Donald Trump’s decision to impose additional tariffs on imports of these products.
During the meeting with leaders, Minister Muto stated that the government is prepared to take necessary actions to protect Japan’s vital auto industry. He affirmed that if given the opportunity to travel to the United States, he would articulate Japan’s stance clearly to American officials.
Japan’s automotive industry faces disproportionate risk from new tariffs compared to other sectors, with vehicles and components comprising more than one-third of Japanese exports to the U.S. last year. Analysts suggest Japanese cars are likely targets for these trade measures, given Japan’s position as a leading automotive exporter to the American market.
Responding to Minister Muto’s assurances, Japan Automobile Manufacturers Association Chairman Masanori Katayama expressed concern that a 25% tariff on all Japanese, Mexican, and Canadian vehicle exports to the United States could negatively impact the Japanese and U.S. economies.
Potential tariffs could have a significant impact on Japan’s workforce, as the automotive sector and its supply chain employ 5.58 million people—8.3% of Japan’s total labor force, according to industry association data. Last year, automobiles made up 17% of Japan’s total exports, with the U.S. market accounting for more than a third of these shipments. This trade dynamic has contributed to Japan’s substantial trade surplus with the United States.
According to JAMA data, Japanese automakers produced 3.3 million vehicles in the U.S. in 2023. This domestic output more than doubled the 1.5 million cars exported from Japan to the U.S. during the same period.
Members from the auto parts industry shared concerns about the measure’s negative impact on management and employment at small and mid-sized companies within the sector. They also discussed potential alternatives to mitigate these effects.
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