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and imports to the country accounted for more than a tenth of their global sales volume in 2024.

Toyota might be able to cope with the tariff pain if it endures, but Japan Inc, overall, will lose. Japanese carmaker Toyota Motor said on June 21 it will raise prices for some vehicles sold in the US by an average of $270 starting in July.

Japan’s auto exports to the US fell 24.7 percent by value in May, compared with a year earlier, according to government data released on June 18. The volume of those exports fell 3.9 percent over the same period. The US introduced a 25 percent tariff on all auto imports on May 3.

Japan also faces a 24 percent ‘reciprocal’ tariff rate on other goods starting on July 9 unless it can negotiate a deal with Washington. The reciprocal tariffs will not stack on top of existing 25 percent auto tariffs.