US President Donald Trump has said that Japan’s top car manufacturers may be forced to cut production if he moves forward with plans to impose tariffs on vehicle imports. Industry is a huge pillar of the Japanese economy. The car manufacturing industry in Japan accounts for about 10 percent of employment. Japan’s Toyota is the world’s best-selling car manufacturer.
Japan Automobile Manufacturers Association (JAMA) President Masanori Katayama warned of the impact of US trade protectionism at a press conference in Tokyo, saying, “We are concerned that the proposed US tax hikes, if applied to exporters from Japan, Mexico and Canada, will have a negative impact on the overall US and Japanese economies that the Trump administration is considering.”
“If this happens, there could be significant adjustments in production,” said Katayama, who is also the chief executive of truck maker Isuzu Motors. Vehicles will account for about a third of Japan’s 21.3 trillion yen ($142 billion) in U.S. exports in 2024. Ministers have been lobbying their US counterparts to secure tax breaks on Japanese goods such as steel and vehicles, but so far these requests have been rejected.
Katayama said at a press conference attended by officials from Toyota, Honda and other major industrial companies that Japan exported 1.37 million vehicles in 1986, out of 3.43 million vehicles sold in 1986. “These exports are essential to providing American motorists with the automaker’s full product lines,” he said.
Katayama also said that international economic “uncertainty” was making investment decisions more difficult. He also said that Japanese brands create jobs in the US and act as corporate members of the US. JAMA has grouped 14 of Japan’s top car and motorcycle manufacturers.
