Japanese auto industry warns of the effect of Trump customs duties economy

The major automobile companies in Japan warned that they might have to reduce production if US President Donald Trump went on to the customs duties he announced on car imports.

The auto industry is an essential pillar in the economy of Japan, with 10% of jobs in the country are linked to this sector.

The Japanese company Toyota is the world’s largest -selling car company.

The head of the Association of Automobile Manufacturers in Japan, Masanuri Katayama, warned of the impact of the United States’s commercial protection policy during a press conference in Tokyo.

“We are concerned that the 25% additional customs duties are currently studying by the Trump administration, if they are applied to exporters from Japan, Mexico and Canada, it will have a negative impact on the economies of the United States and Japan,” he said.

“If this happens, it may impose major changes in production,” Katayama, who is also the CEO of “Isuzu Motors” to produce trucks.

Cars represent about a third of Japan’s exports to the United States, which amounted to 21.3 trillion yen (142 billion dollars) in 2024.

The ministers are trying to pressure their American counterparts to ensure the exemption of Japanese goods such as steel and vehicles from customs duties, but these requests have been rejected so far.

Katayama said at the conference, which was attended by executive directors from Toyota, Honda and other major companies in the sector, that the Japanese car manufacturers have annually exported about 1.37 million cars to the United States, a decrease from a peak of 3.43 million cars in 1986.

He also stressed that Japanese brands have created job opportunities in the United States.

Install interest

In a context related to customs duties, the Central Bank of Japan remained interest rates on Wednesday, despite continuous inflation, in light of the current economic conditions and commercial tensions.

After a two -day meeting, the financial institution kept the main interest rate on 0.5% after it was raised in January.

The bank referred to the possible repercussions of President Trump’s trade war and imposed customs duties. The United States, especially Japanese steel exports, have threatened to direct its arrows to the auto sector.

The bank stated in its statement that “with regard to the risks associated with our prospects, the lack of certainty is still great on the Japanese economic activity, especially the development of the commercial situation … and the prices of raw materials.”