TOKYO (Reuters) – Japan’s automobile industry association urged the government on Tuesday to try to shield Japanese automakers from tariffs that the United States may impose on imports of autos and parts.
The Japan Automobile Manufacturers’ Association is worried about damage to the economies of both countries if U.S. President Donald Trump’s administration proceeds with hefty tariffs on auto imports from Japan, Mexico and Canada, JAMA Chairman Masanori Katayama said.
Trump said last week he wants to impose 25% tariffs on imports of autos as soon as April 2. Separate 25% tariffs on steel and aluminum are slated to start on March 12.
Katayama, also chairman of Isuzu Motors, made his remarks at the start of a meeting with Trade and Industry Minister Yoji Muto in Tokyo. Top executives from automakers such as Toyota, Honda and Nissan were also present.
Japanese automakers are vulnerable to any extra tariffs Trump may impose, particularly on auto imports.
The U.S. remains the top market by vehicle sales for Toyota, Honda and Nissan, which all make some of their most popular U.S. models in either Canada or Mexico. Smaller firms such as Subaru and Mazda are also exposed.
During the meeting, which was closed to media, auto industry executives expressed worries about not being able to pass on higher costs from higher U.S. tariffs and about their economic fallout, Muto told reporters afterwards.
Muto met separately with representatives from Japan’s steel and aluminum industries about the tariff issue earlier on Tuesday.
Japan Iron and Steel Federation Chairman Tadashi Imai, also president of Nippon Steel, told reporters before that meeting that the organisation’s main concern was that the global steel market may be depressed further if protectionism spreads.
(Reporting by Daniel Leussink and Yuka Obayashi; editing by Christian Schmollinger)
