Trump’s tariff deal offers scant relief for Japan automakers as bigger threat looms

Japanese automakers may have sidestepped crushing U.S. tariffs, but the reprieve is offering little comfort as Chinese automakers erode their long-held global edge, complicated by persistent structural challenges at home. On July 22, U.S. President Donald Trump announced that auto tariffs on Japan-made vehicle imports to the U.S. were lowered to 15% from the current 25%.

However, the light isn’t at the end of the tunnel just yet, industry experts cautioned.

“The trade deal struck with the U.S. is certainly a relief in that it offers some certainty that U.S. tariffs on Japan-made cars won’t rise to punitive levels,” said Stefan Angrick, head of Japan and Frontier market economics at Moody’s Analytics.

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