Japanese automakers have begun passing a portion of U.S. import tariffs—levied under former President Donald Trump—directly onto American buyers, Nikkei Asia reported. Companies had previously absorbed the duties to keep sticker prices stable, but trade data show a change in strategy as rising costs squeeze margins. Export prices for passenger vehicles shipped to the United States rose in July, marking the first monthly increase in six months, according to Nikkei. The shift means Japanese models are likely to become more expensive at U.S. dealerships, adding to broader inflationary pressures already affecting household budgets. The development highlights a wider trend in which businesses are transferring tariff-related expenses to consumers. Analysts note that the average U.S. tariff rate has climbed to about 18.6%, its highest level since 1933, raising concerns that import levies intended to reduce trade deficits are instead fueling price increases across the economy.
Why Tariff Inflation Is Just Starting" https://t.co/nL2Ffd6awv via @wsj
Americans set to pay more for cars, coffee and clothing as average U.S. tariff rate jumps to high not seen since Great Depression, per WaPo.
Tariff costs 'rising each passing week' https://t.co/XCr7btOCrj