Japan auto exports fall 28.4% as US tariffs bite, despite new trade deal easing duties. Industry warns of ongoing pressure from Trump’s trade war

Japan auto exports fall once again, with fresh government data revealing a steep 28.4% year-on-year plunge in vehicle shipments to the United States, underscoring the deepening impact of trade tensions triggered by Washington.

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The figures, released on Wednesday by Japan’s finance ministry, also showed a 13.8% drop in the total value of goods exported to the US — the sharpest fall in more than four years, according to Bloomberg.

Auto parts shipments fell by 7.1%, highlighting broader challenges in the supply chain.

The auto industry, which represents nearly a third of Japan’s exports to the US, has been hit especially hard by President Donald Trump’s tariff policies.

A 27.5% levy imposed earlier in the year crippled competitiveness, prompting concerns across Japanese business circles.

However, relief came on Tuesday as a bilateral trade pact came into force, reducing tariffs on Japanese vehicles to 15%.

While the new rate aligns with that of other imported goods, industry experts say the damage may already be substantial.

Despite the lowered duties, Japan auto exports fall significantly — a trend analysts believe will persist unless broader negotiations are undertaken to stabilise trade relations.

President Trump’s trade strategy, designed to shrink the US trade deficit and bolster domestic manufacturing, has rattled international markets.

apan’s overall trade surplus with the US dropped by nearly 50% year-on-year in August, landing at 324 billion yen ($2.21 billion).

The powerful Japanese auto industry, home to global giants like Toyota, Honda, and Nissan, accounts for roughly 8% of the country’s workforce.

Business lobbies in Tokyo are urging the government to pursue further dialogue with Washington to prevent long-term structural damage.

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The sustained pressure on exports comes as a blow to Prime Minister Kishida’s government, which has been working to stabilise growth amid slowing demand in key markets and rising global trade protectionism.