 Japanese Carmakers Want Government Help to Negate US Tariffs

Auto industry leaders in Japan called on Tuesday for the government to shield carmakers from tariffs that US President Donald Trump wants to impose on imported cars and parts.

The Japan Automobile Manufacturers’ Association fears hefty tariffs on auto imports from Japan, Mexico and Canada will harm the economies of all countries if the Trump Administration goes ahead, JAMA chairman Masanori Katayama said.

Trump said last week he wants to impose 25% tariffs on imports of autos as soon as April 2. Separate 25% tariffs on steel and aluminum are slated to start on March 12.

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Katayama, also chairman of Isuzu Motors, made his remarks at the start of a meeting with Trade and Industry Minister Yoji Muto in Tokyo. Top executives from automakers such as Toyota, Honda and Nissan were also present.

Japanese automakers are vulnerable to any extra tariffs Trump may impose, particularly on auto imports.

The US remains the top market by vehicle sales for Toyota, Honda and Nissan, which all make some of their most popular US models in either Canada or Mexico. Smaller firms such as Subaru and Mazda are also exposed.

During the meeting, which was closed to media, auto industry executives expressed worries about not being able to pass on higher costs from higher US tariffs and about their economic fallout, Muto told reporters afterwards.

Muto met separately with representatives from Japan’s steel and aluminium industries about the tariff issue earlier on Tuesday.

Japan Iron and Steel Federation chairman Tadashi Imai, also president of Nippon Steel, told reporters before that meeting that the organisation’s main concern was that the global steel market may be depressed further if protectionism spreads.