The headquarters of Nissan Motor Co. in Yokohama
21:00 JST, November 8, 2024
Major Japanese car manufacturers, whose main market is the United States, are wary of possible US policy changes by newly elected President Donald Trump.
Trump, who aims to bring manufacturing back to the United States, has announced that all vehicles produced in Mexico will be subject to a 200% tariff. Currently, such vehicles are not subject to such a tariff if they meet certain requirements due to a trade agreement between the United States and Mexico. Many Japanese automakers have set up production bases in Mexico and export their cars from there to the United States.
Honda Motor Co. produces about 200,000 cars annually in Mexico and exports about 80% of them to the United States.
“If tariffs were to be imposed permanently, we would have to think about producing cars in a country that is not subject to them,” said Honda Vice President Shinji Aoyama.
Nissan Motor Co. sold approximately 900,000 vehicles in fiscal 2023, 24% of which were produced in Mexico.
“Our medium to long-term path will not change, but I would like to keep a close eye on the situation,” Nissan President Makoto Uchida said at a news conference on Thursday.
Trump has signaled a policy to reexamine preferential measures for electric vehicles introduced by President Joe Biden’s administration. This could be beneficial for Japan, which excels in hybrid cars. Some Japanese companies expect long-term growth in the number of electric vehicles in the United States and have begun preparations to set up production bases for such vehicles in the country.
Major Japanese automakers continue to struggle in the Chinese market, and with the U.S. market becoming increasingly uncertain, rough seas lie ahead.
