Japan Automakers Incur 1.4-T.-Yen Costs from Trump Tariffs

Tokyo, Nov. 11 (Jiji Press)–Seven major Japanese automakers have said they incurred combined costs of over 1.4 trillion yen for April-September from the high tariffs imposed by U.S. President Donald Trump’s administration. As a result, three of them–Nissan Motor Co., Mazda Motor Corp. and Mitsubishi Motors Corp.–reported consolidated net losses for the first half of fiscal 2025. The other four saw their profits dive. For the full year through next March, the combined tariff costs are forecast to exceed 2.5 trillion yen. In addition, uncertainty is increasing over semiconductor and other supply chains. The U.S. tariff rate on Japanese vehicles was lowered to 15 pct from 27.5 pct in mid-September following a bilateral agreement. But the situation remains severe, said Mazda Senior Managing Executive Officer Jeffrey Guyton. Japanese automakers are working to increase the production of vehicle bodies and parts in the United States. But the tariff costs reached 900 billion yen for industry leader Toyota Motor Corp. and 275 billion yen for Nissan. Raising prices to reflect the costs, however, would hurt consumer sentiment. “This is not a simple issue,” said Subaru Corp. President Atsushi Osaki. Toyota and Honda Motor Co. are also cautious about increasing prices. The auto industry was also hit by high material prices and a stronger yen. Five automakers, or all except Toyota and Subaru, incurred a drop in global four-wheel vehicle sales. They struggled especially in Asia including China, the world’s biggest market. Toyota and Subaru performed well in North America. Parts supplies from China-linked Nexperia were disrupted, causing Honda and Nissan to halt or decrease production at their plants. Although Nexperia chip shipments are expected to restart, the geopolitical risk is clouding the outlook of Japanese automakers. END [Copyright The Jiji Press, Ltd.]