TOKYO — Japanese auto giants such as Toyota Motor and Honda Motor are bracing for a major dent in their earnings this year from the impact of U.S. tariffs, with Washington’s trade deals with Beijing and London offering little relief.
Japan’s car industry, a cornerstone of its export-dependent economy, is grappling with a stronger yen and an additional 25% levy on vehicles and auto parts shipped to the U.S. that are not compliant with the U.S.-Mexico-Canada Agreement. The USMCA is a free trade deal U.S. President Donald Trump negotiated in his first term, and multinational automakers have expanded their supply chains to benefit from it.
