Japanese Carmakers Raise U.S. Prices as Trump Tariffs Bite

Japanese automakers have begun passing part of the U.S. tariffs imposed during the Trump administration directly to American car buyers, Nikkei Asia reported. After months of absorbing the duties to keep showroom prices steady, the companies have raised export prices to the United States, pushing Japan’s auto export price index higher for the first time in six months. The shift follows a 25% tariff on Japanese passenger vehicles and a 24% levy on other auto-related imports. Analysts say the manufacturers’ capacity to soak up the duties has been exhausted, meaning U.S. consumers will increasingly shoulder the burden through higher sticker prices. Although individual companies have not disclosed detailed increases, Nikkei said some popular models bound for North America are now several hundred dollars more expensive per unit. The price pass-through could widen the gap with domestically built cars at a time when elevated borrowing costs are already weighing on U.S. auto demand.