OPINION: Diminishing US Profits Force Japanese Automakers to Reevaluate Asian Markets

Following negotiations regarding tariffs between Japan and the United States at the end of July 2025, it was agreed that the U.S. tariff rate on Japanese passenger vehicles would be reduced from 27.5% to 15%. By cutting the tax rate nearly in half, manufacturers exporting automobiles from Japan to the United States will enjoy lower tariff-related costs. However, the tariff rate before being raised to 27.5% in April 2025 was only 2.5%, which means that the new tariff rate is six times that of the original one.