Japan requires exemption from American car rates

The Japanese government asked the United States on Thursday that Japan will be exempt from automotive prices, calling for the last decision by its nearestly regrettable ally, “said a government spokesperson.

“We have highly urged (the American government) to exclude Japan from the measure,” said chief secretary of the cabinet, Yoshimasa Hayashi, adding that he had been informed by Prime Minister Shigeru Ishiba to have related ministers to answer the question.

The chief secretary of the cabinet Yoshimasa Hayashi speaks during a press conference in Tokyo on March 27, 2025. (Kyodo)

The Minister of Industry, Yoji Muto, told journalists separately that the government had again urged Washington to exclude Japan from the price of an additional 25% on all cars made outside the United States, following a similar demand during his visit to the country earlier this month.

Hayashi said American movements to restrict trade may have “a significant impact on bilateral economic ties, the global economy and the multilateral trade system”.

President Donald Trump announced on Wednesday an additional 25% rate on automotive imports without exception. We feared that the hike, which should be implemented on April 3, disrupts the world supply chains and will take a blow to Japanese car manufacturers given their penetration on the American market.

“We have to consider the steps to respond appropriately. We have all the possible options on the table,” Ishiba told a committee session in the Chamber of Advisors.

Given the probable negative economic impact, Japan has asked to be exempt from car rates. But his efforts to gain preferential treatment apparently fell flat.

The expeditions of cars and automobile parts linked to the United States constituted a large part of the total exports of Japan by value to the largest world economy in 2024.

Speaking during a press briefing, Hayashi underlined the “major contributions” that Japanese companies, including car manufacturers, brought to the American economy. Japanese car manufacturers have made direct investments in the United States worth around 61.6 billion dollars and created around 2.3 million jobs, he said.

“It is extremely regrettable” that the United States has decided to hike at car rates without exception, he said. “We will carefully examine the impact on Japan and continue to strongly ask for an exemption.”

At the siege of the Liberal Democratic Party in power, the leader of the Italian policies Onodera met the affairs of the American assemblies Joseph Young.

Onodera told Young that Japan should negotiate with the United States because the planned price hike will have a significant negative impact on the Japanese economy. He asked the American envoy to transmit this message to the American administration, according to Onodera.

Japanese vice-minister of Foreign Affairs Takehiro Funakoshi told his American counterpart Christopher Landau during telephone discussions that the measure “was extremely regrettable” and Tokyo wants to continue the talks on the issue, said a source from the Japanese government.

Photo taken on March 27, 2025 from a Kyodo News helicopter shows vehicles for foreign countries of a logistics center in Kawasaki near Tokyo. (Kyodo)

Associated coverage:

The automatic price of 25% of Trump to take effect on April 3 without exemption

The United States applies 25% of prices to all steel, aluminum imports

The United States is making no promise on tariff exemptions for Japan in commercial discussions

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