Marques mull production cuts
Japan’s automotive industry is warning it may have to make “significant” production cutbacks if the US goes ahead with 25 per cent tariffs on automotive imports from the beginning of April.
The Japan Automobile Manufacturers Association (JAMA), which includes Toyota, Honda and Nissan among its members, says production adjustments may be one response to the higher duties proposed by US President Donald Trump.
The subject of tariffs was added as an “emergency agenda” item to a meeting of JAMA board members this month, reports Automotive News.
Masanori Katayama, pictured, chairman, says: “If this [higher tariffs] were to happen on April 2, we could expect a significant production adjustment.
“If production has to be adjusted, where would the damage be done, and how should we take care of it?
“We will be looking at how to absorb short-term shocks and what concrete measures we can take to deal with these shocks.”
He describes reducing output as a “theoretical” option for the industry.
“It was mentioned as an example of what we should think about in order to protect the state of the automobile industry as a Japanese export base. It does not mean that production will be halted.”
JAMA is also calling for the Japanese government to continue talks with US trade officials to secure tariff exemptions.
However, the prospect of success on that front may be slim after Howard Lutnick, US Commerce Secretary, recently said the White House has no intention of excluding any country from the increased tariffs.
Trump plans to impose levies of 25 per cent on imported vehicles from April 2, up from the current 2.5 per cent for passenger cars.
Japanese carmakers export thousands of vehicles to the US annually, with Toyota clocking 538,685 units in 2024.
Subaru shipped 328,064 vehicles to the US during the same period, while Mazda sent 235,738 units from Japan and Nissan exported 131,800, reports Automotive News..
