Japanese carmakers reduced the average price of vehicles shipped to the United States by roughly 20% in May, the steepest monthly drop on record, according to Bloomberg calculations of trade data. Industry executives are absorbing the additional U.S. import tariffs introduced by President Donald Trump instead of passing the higher costs to American consumers, a strategy aimed at protecting market share in the world’s second-largest auto market. The price cuts have begun to draw notice from policymakers. The Bank of Japan’s Fukuoka branch manager said several manufacturers were lowering export prices to offset the tariff burden, highlighting the strain on sector profitability. Analysts warn that sustained discounting could erode margins and accelerate longer-term plans to expand production inside the United States if the trade measures remain in place.