When the US imposed a 25 per cent tariff on imported Japanese cars, the expectation had been higher sticker prices for US consumers and falling sales. The assumption was that the added costs to exporters would inevitably be passed down the line. Yet, months into the policy, the outcome has proven far less dramatic.
Japanese automakers’ US sales have shown surprising resilience. Toyota, for example, hit a global sales record in May, with North America sales up more than a tenth. Part of that is thanks to their local US production.
Behind the stable sales figures, export data tells a more troubling story. In May, the number of vehicles shipped to the US declined by just 3.9 per cent, according to official data. When export value is divided by the number of units sold, the average price per vehicle drops to about ¥3.5mn, or $24,000, roughly a fifth less than the previous year. By total value, Japan’s vehicle exports to the US fell by nearly a quarter.