The State of Japanese Auto Exports

Japan exported $32 billion worth of auto parts to the US in 2024, representing 18% of total US parts imports. However, the introduction of a 25% tariff on automotive imports has disrupted supply chains and increased costs, reducing competitiveness.

Source: WC Shipping Blog

Impact of US-China Trade Truce

The trade truce temporarily halts escalating tariffs but does little to alleviate existing US tariffs on Japanese car parts. Japan has already lost $17 billion in export potential in the US market due to these tariffs.

Source: Reuters

Challenges in the Global Market

The shift towards electric vehicles (EVs) has reduced demand for traditional auto parts, such as internal combustion engine components. OEM components are being discounted by 20-30% in some markets, forcing Japanese suppliers to innovate.

Source: WC Shipping Blog

Opportunities and Risks in Car Parts Exports

Japan remains a key player in the global auto parts market due to its high-quality components and advanced manufacturing techniques. However, rising production costs and geopolitical tensions pose risks to its competitiveness.

Source: White House