Japan’s largest companies, including Toyota, Sony and Mizuho, could lose up to $27.6 billion due to US tariffs.
According to company representatives, the tariffs imposed by US President Donald Trump could reduce annual profits by tens of billions of dollars. At the same time, in the event of a recession, the consequences for the United States could be even more serious.
According to analysts, the automotive industry has been hit hardest in Japan, as it is subject to 25% tariffs. In 2023, Japan exported 1.5 million cars worth more than $40 billion to the United States, and car manufacturers supply many cars and parts to the United States from Mexico and Canada, which have also been affected by the tariffs.
According to Honda CEO Toshihiro Mibe, the impact of the tariff policy on the Japanese market is enormous.
In early April, Trump signed an executive order imposing “reciprocal” import tariffs on 185 countries. The base rate was 10% on all imported goods, but individual tariffs were set for a number of countries. The EU later said that the US tariffs violated World Trade Organisation rules.
Japanese carmaker Nissan had previously decided to take large-scale personnel measures due to losses amid falling sales and a difficult economic situation. Meanwhile, the Japanese authorities have stated their desire to maintain strategic economic relations with China, despite pressure from the US.
