17:30 - 4.04.2025

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April 4, Fineko/abc.az. The duties imposed by U.S. President Donald Trump on foreign cars will result in additional costs of almost $24 bn for Japanese manufacturers.

ABC.AZ informs that Nikkei Asia reports about this with reference to the report of brokerage firm UBS Securities that came to its disposal.

According to the excerpts from the document, the US duties will increase the costs of the seven largest Japanese automakers by more than 3.5 trillion yens ($24 billion). The additional costs of Toyota Motor alone could reach 1.8 trillion yens ($12.3 billion).

"Japanese automakers may have to take some measures, such as moving production to the United States," Kohei Takahashi, an analyst at UBS, says.

According to the Japan Automobile Manufacturers Association (JAMA), in 2023, almost one in three cars exported from Japan was headed to the U.S. In 2024, according to the Ministry of Finance of Japan, 30% of the total exports of the Asian country to the U.S. accounted for vehicles.

"I very much hope that a productive dialogue will be established between the governments in order to find a promising way as soon as possible to preserve a business environment conducive to the development of the automotive industry in both Japan and the United States," the newspaper quoted JAMA chairman Masanori Katayama as saying.

According to estimates by the research institute at Daiwa Securities, as a result of Trump's tariff policy, Japan's real GDP may lose up to 2.9% in 2029. Nikkei newspaper previously estimated that only due to additional duties on car imports, the Japanese economy could lose up to 13 trillion yens (about $86.1 billion) in the most negative scenario, which is approximately equal to 2% of GDP.