Josh Boak and Alexa St. John, Associated Press
WASHINGTON (AP) – US automakers are concerned about President Donald Trump’s agreement to tariffs on 15% of Japanese vehicles, saying they face steep import taxes on steel, aluminum and parts than their competitors.
“We need to review all the details of the contract, which is a transaction that charges tariffs on Japanese cars without US content,” said Matt Blunt, chairman of the American Auto Policy Council.
In an interview, Brandt said US businesses and workers are “undetectedly at a disadvantage.” Because they face 50% tariffs on steel and aluminum and 25% tariffs on parts and finished vehicles on products covered by the 2020 US-Mexico-Canada agreement.
The domestic automaker’s response reveals the challenge of enforcing policies across the global economy, indicating that all of Trump’s promises may have a true trade-off from policy choices that puts cars at risk the severe blows of politically important states such as Michigan and Wisconsin, the source of revenue and identity.
After announcing it on Tuesday, Trump portrayed the trade framework as a major victory, saying it would open the Japanese economy in a way that could add hundreds of thousands of jobs to the US economy and fill the sustainable trade imbalance. The deal includes a 15% tariff in place of the 25% import tax that the Republican president threatened to charge from August 1. Japan will summarise $550 billion to invest in US projects, the White House said.
The framework with Japan will remove restrictions that prevent American vehicles from being sold in that country, adding that vehicles built in Detroit can be shipped directly to Japan and ready to be sold.
But Brandt said foreign car producers, including the US, Europe and South Korea, have only a 6% share in Japan, raising skepticism that simply having an open market that says the Trump administration exists in the country is enough.
“It’s hard to crack. I’d be very surprised to see meaningful market penetration in Japan,” Brandt said.
Major Japanese automakers, Toyota, Honda and Nissan, did not immediately respond to requests for comment on the industry framework. Nor did they drive Autos Drice America, Alliance for Automotive Innovation or industry-leading organizations.
Japan’s framework could provide basis for automakers and other countries to drive changes in the Trump administration’s tariff regime. The president previously said that flexibility in import tax negotiations is something he cherishes. The USMCA will receive reviews next year.
Sam Fiorani, vice president of Consultancy Autoforecast Solutions, said Ford, GM and Stellantis “have all the rights to be upset.” However, “Honda, Toyota and Nissan import vehicles from Mexico and Canada, where current levels of tariffs could be higher than those applied to Japanese imports. Most of the Japanese brand’s mass models are already produced in North America.”
Fiorani noted that some exceptions include the Toyota 4Runner, Mazda CX-5 and Subaru Forester, but most of the other imports fill a niche that is too small to guarantee production in the US.
“There will be negotiations between the US, Canada and Mexico, which will likely cause tariffs of over 15%,” Fiorani added.
St. John contributed from Detroit.
Original issue: July 23, 2025, 2:30pm EDT
