Japanese Automakers Build Twice as Many Cars in U.S. Than Import
There are talks of a 25 percent tariff on imported Japanese cars.
With seemingly endless drama coming from talks of tariffs from the White House, one of our trading partners who might get hit with a tariff on imported cars is Japan. According to Bloomberg, President Trump is considering putting tariff on cars built in Japan and imported to the States as high as 25 percent. But with so many Japanese-branded cars being built right here in the U.S., how many are actually being imported these days?
Bloomberg put together this handy chart using data from the Japan Automobile Manufacturers Association (JAMA) showing that 69 percent of the Japanese cars sold in the U.S. are built domestically while the other 31 percent are built in Japan and imported to the States. That’s a huge contrast to what those numbers were in 1985 when 91 percent of cars from Japanese automakers sold in the U.S. were built in Japan. That’s a 45 percent drop in imports over 33 years.
JAMA wants to make sure the U.S. Department of Commerce knows these stats. “Tariffs would have a serious negative impact on the U.S. economy,’’ JAMA told them on Friday according to Bloomberg. “Imported vehicles do not threaten U.S. national security.’’
These statistics go to show how the definition of an American car has changed over the last few decades. A lot of Japanese-branded cars are built in America and a lot of American-branded cars are built outside of America. I've owned two Chevrolets that were built in Canada and the Honda I have now was built in Alabama. If the new tariff on Japanese cars does come to fruition, it will be interesting to see if further production shifting takes place.
- RELATEDChina Considers Slashing Vehicle Import Tariffs to 10 Percent, but Not Because of TrumpThe Chinese government may slash its import tariffs in half, but it's not because of the U.S. President's Tweets.READ NOW
- RELATEDBMW Warns U.S. That Tariffs May Cause Loss in Jobs and InvestmentsBMW's largest U.S. plant exports nearly 40 percent more vehicles than it sells domestically each year.READ NOW
- RELATEDAutomakers Warn Trump That Tariffs Will Drive Up Auto PricesThe casualties of a trade war will be jobs in the auto industry.READ NOW
- RELATEDHere's What's Really Going On With Harley-Davidson, Trade Tariffs, and Donald TrumpOne of America's most iconic companies finds itself in the middle of a trade war—and at the mercy of the president.READ NOW
- RELATEDTrump's Foreign Car Tariff Means More Money Out of American PocketsIf the 25 percent tariff actually happens it will be felt by everyone.READ NOW