President Trump hailed a new trade framework with japan as a importent achievement, projecting it would create hundreds of thousands of American jobs and foster growth in the Japanese economy by addressing trade imbalances.
The agreement reportedly lowers U.S. tariffs on Japanese goods to 15%, a reduction from the 25% Trump had previously threatened to implement starting August 1st. the White House also stated that Japan committed to investing up to $550 billion in U.S. projects.
However, industry analysis suggests a different outcome for American automakers. SAM Fiorni, Vice President of Auto Forecast Solutions, commented that Ford, General Motors, and Stellantis have grounds for concern. He noted that Japanese manufacturers like Honda, Toyota, and Nissan would likely continue importing vehicles from Mexico and Canada, potentially facing higher tariffs on those imports than on direct Japanese imports. Fiorni pointed out that for most imported cars, with exceptions like the Toyota 4Runner, Mazda CX-5, and Subaru Forester, sales volumes are too low to justify domestic U.S. production.
Fiorni also anticipates future negotiations between the U.S., Canada, and Mexico regarding their trade agreement. While these talks might result in tariffs capped at 15%, he observed a lack of urgency from any party to renegotiate the existing free trade deal established by the previous administration.