[Text/Watchman Network Liu Huaizhen Editor Gao Shen] According to a report by the Singapore Lianhe Zaobao on April 11, the US's move to impose tariffs on imported cars will hit Japan's auto industry first. The US is Japan's largest export market, and Japan is the country with the second-largest amount of car exports to the US after Mexico. Data shows that in 2024, Japan's car exports to the US amounted to 6.26 trillion yen (approximately RMB 318.8 billion), accounting for nearly one-third of Japan's total exports to the US.
After Trump raised the tariffs, the import tax for Japanese cars entering the US will increase from 2.5% to 27.5%, while the tariff for trucks will rise from 25% to 50%. It is estimated that approximately 12.44 million people, or 10% of the population in Japan, will be directly affected.
The automotive industry is at the core of Japan's economy. According to information from the Japan Automobile Manufacturers Association website, it employs 5.58 million people. Calculating based on an average household size of 2.23 people in Japan, this could affect around 12.44 million people, which is about 10% of Japan's total population.
On April 11, when Shinzo Ishiba convened a comprehensive countermeasures headquarters meeting regarding the US tariff increase, he stated that the US tariff policy directly targets industries such as automobiles, steel, and aluminum that support Japan's economy.
Previously, Shinzo Ishiba had referred to the US tariff policy as a "national crisis" for Japan on two separate occasions. However, the 90-day tariff deferral period does not apply to the previously implemented tariffs on automobiles, steel, and aluminum.
On April 4, Shinzo Ishiba answered questions at the House of Representatives Cabinet Committee meeting. Photo by AFP.
A report by UBS Securities Japan automotive analyst Koyama Kōhei indicates that the new tariffs are expected to cost Japan's top five automakers a total of approximately $25 billion (approximately RMB 182.7 billion) annually. However, relocating production to the US is not a solution for Japanese automakers, as labor and factory construction costs in the US are more than 30% higher than in Mexico and Japan.
Julia Speece, head of trade and market intelligence at the International Trade Center (ITC), stated, "The automotive industry accounts for 20% of Japan's total exports, with most of its exports heading to the US market. According to our calculations, a 25% tariff would mean a loss of approximately $17 billion (approximately RMB 124.2 billion) in auto exports to the US market."
According to NHK reports on April 12, regarding Trump's tariff policy, Japan has decided to send Economic Revitalization Minister Akira Akazawa to the US for negotiations.
The report states that Akira Akazawa will visit the US for a three-day trip starting April 16 and plans to hold initial talks with US Treasury Secretary Besten and US Trade Representative Greer regarding this tariff issue on April 17 in Japan time.
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Original source: https://www.toutiao.com/article/7493063798824190464/
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