Japan is considering easing rules on crash tests and auto safety rules for imported vehicles, according to a report from local news outlet Nikkei. The move is part of ongoing negotiations with the United States, following Donald Trump’s 25% tariff on imported cars and auto parts announced last month.
Trump decided to sit in on negotiations between his administration and Japanese officials in Washington last Wednesday at the White House with Japan’s Economic and Fiscal Policy Minister Ryosei Akazawa.
The U.S. President then posted on Truth Social that it has been ‘A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!’, without commenting any further.
In 2024, American-made vehicles accounted for less than 2% of the auto market in the Pacific island, as consumer preferences show strong domestic brand loyalty.
Some of the reasons given for the low U.S. exports to the country include vehicle size (unfit for compact urban environments), right-hand drive setup, limited dealer networks and higher maintenance costs for American brands when compared to the local ones.
Japan Auto Policy
Japan follows a 1958 United Nations agreement on unified auto standards, while the U.S., though involved in talks, maintains its own rules and allows self-testing by automakers. As a result, U.S. vehicles must undergo separate Japanese certification, a “process that takes several months” — according to Nikkei.
This is not the first time the Asian country’s auto standards have been on the negotiation table as, in the Trans-Pacific Partnership talks a decade ago, the two countries had agreed to let American cars skip some of the certifications when imported to Japan.
Contrary to the U.S., which historically maintained a 2.5% tariff on imported cars, now raised to at least 25% (if not considering the reciprocal tariffs imposed by Trump on several countries), Japan imposes no tariffs on imported passenger cars.
The country offsets non-tariff barriers through regulatory requirements, safety standards, and certification processes tailored to Japan’s driving conditions and urban environments.
Tariff Impact
While the U.S. concentrates on boosting imports to Japan at the negotiations, Japan sees the auto tariffs representing a potential loss of $17 billion in export opportunities to the US market.
Toyota and Honda are the most affected brands, as the U.S. represents their largest market.
Last week, Honda stated it is moving its hybrid model Civic’s production to the U.S., according to Bloomberg. “The decision was made based on external factors including the Trump administration’s tariffs”, a spokesperson for the automaker stated.
On April 9, Donald Trump announced a 90 day pause on the application of the tariffs, as negotiations take place between the nations. However, the U.S. President later clarified that it didn’t apply to the 25% rate on imported vehicles.
This Monday, Japan’s Prime Minister Shigeru Ishiba stated that “Japan has grave concerns over the consistency” regarding the latest U.S. auto tariffs, considering the last deal on duties signed by the two countries in 2019.
During Trump’s first term as President, he signed a bilateral deal with Japan to cut tariffs on U.S. farm goods and Japanese machine tools and other products. According to Japan’s former PM Shinzo Abe, it “has been firmly confirmed that no further, additional tariffs will be imposed,” he told a news conference after signing the 2019 deal.
