Japanese automakers warn of production cuts from tariffs

Japanese car manufacturers raised concerns about possible U.S. tariffs on vehicle imports. They warned that if the U.S. imposes a 25% tariff, it could force them to cut production. The automotive industry is vital in Japan, supporting about 10% of jobs in the country. Masanori Katayama, chair of the Japan Automobile Manufacturers Association, spoke at a press conference in Tokyo. He highlighted that the tariffs would negatively affect both the U.S. and Japanese economies. The automobile sector plays a major role in Japan's exports, accounting for a significant portion of the country's total U.S.-bound shipments. Currently, Japanese automakers send about 1.37 million vehicles to the U.S. each year. This number has dropped from a peak of 3.43 million in 1986. Katayama mentioned that these exports are important for offering a complete range of vehicles to American drivers. Japanese officials have been asking U.S. leaders for exemptions from tariffs on cars and steel, but their pleas have not yet been successful. Katayama also noted that economic uncertainties are complicating investment choices for companies. He emphasized that Japanese firms have created jobs in the U.S. and are integrated into the American business community.