Trump’s rate contract gives less relief for Japan Auto because of the risk of China

Japanese automakers may have crushed US prices, but this recovery is a little comforted as Chinese carriers have reduced their long global coast.

On July 22, US President Donald Trump announced this Vehicle rate Vehicle imports in the United States on Japan-made vehicles were brought down to 15% of the current 25%.

However, industry experts warned that the light is not yet at the end of the tunnel.

“The trade agreement with the United States certainly gives a relief that the US rates on the Japan-made car will not go to a punitive level,” said Moody’s TIC Nalitics Frontier Market Economics Stephen Angryk.

“But I hesitate to say good news. The 15% American import rate initiated by Japan is still significant. And the 15% rate is definitely higher than expected.”

Analysts say the major challenge is due to China’s meteorite growth in the global automotive industry. Once a significant growth market for the Japanese brand, China converts to the dominant rivals.

Angrik said an important challenge for Japanese growers is intense competition from China. As the home-made car’s household demands began to soften, China has made its conversion on the strength of advanced manufacturing.

Aiscars’ Executive Analyst Carl Bruure is his opinion, who mentioned that low -cost Chinese vehicles are the “biggest threat” for Japan’s vehicle industry and financial perspective.

China is the largest car manufacturer and exporter in the world, especially Electric vehicles?? The country is dominated by serious factors and EV Innovation The grinding of foreign automakers in a growing amount of??

Chinese automakers are also significantly pending in Southeast Asia – A region dominated by Japanese brands like Toyota, Honda and Nissan -The climb to maintain a part of their unavailable global markets for the Japani automakers.

According to A 2025 PWC reportThe market share of Japanese auto manufacturers in Indonesia, Malaysia, Thailand, Philippines, Vietnam and Singapore, is commonly known as Asian -6, from 68.2% to 2024 in 2024 in 2024.

“(China Auto) is expanding in markets where Japanese companies are at a strong base. Thailand is an example,” said Moody’s TIC Nalitics expert.

Beyond Southeast Asia, Japan’s second largest most largest export market China: Australia is also competing.

A Australian Automotive Dealer Association conducted a recent study It is estimated that China has prepared to overtake other countries as the leading source of Australian vehicle in the next decade.

By 33535, only 43% of all imported vehicles in Australia are likely to be produced in China, the expected in 225, the report said. In contrast, Japanese imports are likely to fall from 32% to 22% from 2025 to 22%.

Large automakers such as Toyota are having home success, Nissan Bruer explained explained by the rising threat of China’s automotive industry.

By previous management and Off the planned plants He is increasing his grief. Nisan plans to close and reduce seven of his 17 plants by 2027 by 2027 About 15% of the world As part of the planning plan.

“Everything, the attitude of the Japan’s car industry is very challenging,” said Moody’s Angryc.

While ToyotaWorldly and diverse manufacturing footprints have a relative advantage of tactics Subbaru And Laborer There are more pressure, the renowned Moo Kato, the founder of the Lightstream Research.

Kato said that Suburu and Mars have had a strong relationship with Toyota when they face “significant high burden”.

Fun Share a combined plant with toyotaSo Subaru is working together with Toyota to create a co-developed electric vehicle for his 2026 debut.

Long -term, Kato believes that these partnerships can be deeper and possibly more formal integration under Toyota’s umbrella.

“I do not expect to be on a short-term period of short-term. However, when you start looking at the end of the decade, it is probably to think for them, maybe they said.

Nevertheless, analysts have admitted that Trump’s final rate rates are at least one benefit: some estimates.

It is still soon to fully estimate the long -term consequences of the new trade agreement between the US and Japan, but with the confirmation rate agreement, Japanese carriers will have the opportunity to move on to their price and cost structure, experts expressed their echo.

However, it is unclear the rate of the rate of other vehicle holders.

“I think the perfect case for Japan is now considered relatively good, but how their competitiveness changes, saying that the auto and Mexica created in Korea and Mexico and Canada has been exported,” Kato said, “Kato said.