Key Facts
• U.S. reduced tariffs on Japanese cars from 27.5% to 15% on September 16, 2025.
• New tariff rate is six times higher than the previous 2.5% rate.
• Japan Automobile Manufacturers Association (JAMA) Chairman met with Minister Akazawa on September 17, 2025.
• Minister Akazawa emphasized the importance of protecting core industries and employment.
• JAMA Chairman pledged to maintain positive wage and investment trends.
• August 2025 U.S.-bound exports fell 13.8% year-on-year, marking five consecutive months of decline.
• Automotive exports to the U.S. dropped significantly by 28.4% in August 2025.
Summary
The United States recently reduced tariffs on Japanese car imports from 27.5% to 15%, following a bilateral agreement. Despite the reduction, the new rate remains six times higher than the previous 2.5%, posing challenges for Japan’s automotive industry. On September 17, 2025, Japan Automobile Manufacturers Association Chairman Masanori Katayama met with Minister for Economic Revitalization Akazawa to discuss measures to mitigate the impact. Minister Akazawa stressed the importance of safeguarding Japan’s core industries and employment, while Katayama committed to sustaining positive trends in wages and investments. Meanwhile, Japan’s August 2025 trade data revealed a 13.8% year-on-year decline in U.S.-bound exports, with automotive exports plummeting by 28.4%, highlighting the growing impact of U.S. tariff policies.
