U.S. Tariff Hike May Cut Japanese Car Exports by Up to 50% – Impact on Logistics

The U.S. is considering additional tariffs on Japanese cars.

If imposed, Japan’s car exports to the U.S. may decline significantly.This post explains the impact on the logistics industry from an on-the-ground perspective.

Impact of U.S. Tariff Hike

The U.S. announced plans to add a 25% tariff on imported cars.

Currently, passenger vehicles face 2.5% and trucks face 25% in tariffs.

If implemented, tariffs will rise to 27.5% for cars and 50% for trucks.

Possible Hit to Japanese Exports

In 2024, Japan exported 422 units, and 137 units went to the U.S.

The U.S. is currently Japan’s largest export destination for cars.

Why Exports Are Still Needed

Japan has auto factories in the U.S.

However, some models not made locally or those serving a backup role are still exported from Japan.

Concerns in the Logistics Industry

Serious Impact on Shipping Sector

If export volume drops, it will heavily affect the shipping industry’s performance.

Car transport remains a key pillar of logistics operations.

What to Watch Going Forward

There may be reduced car sales or a shift toward American-made vehicles.

Mexican-made vehicles may also benefit due to tariff relief for U.S.-made parts.

It is essential to keep watching market trends closely.