Donald Trump has announced a landmark trade deal with Japan that includes tariff reductions and a commitment from Tokyo to open its market to American cars. However, US automakers are likely to continue struggling to win over Japanese drivers, who favour compact, fuel-efficient vehicles and often view American models as oversized and unreliable.
The deal, which imposes 15% tariffs on Japanese car imports, was hailed by Trump as a victory. But Japanese industry experts say the problem for US brands is not trade barriers but a lack of marketing and right-hand drive models. Takeshi Miyao of the Carnorama consultancy noted that Ford and GM rarely offer right-hand drive cars in Japan, and their vehicles are too large for narrow roads and tight parking spaces.
Consumer Reports reliability rankings place Japanese brands at the top, with Subaru, Lexus, Toyota and Honda leading, while American marques such as Jeep, GMC, Cadillac and Rivian languish at the bottom. Takahisa Matsuyama, a Tokyo driving instructor, said US cars have a long-standing image of poor fuel economy and frequent breakdowns. In contrast, Japan’s best-selling vehicles are kei cars – tiny 660cc models perfectly suited to urban driving.
Japan imported only 16,707 US vehicles in 2024, compared with more than 250,000 from European brands. The Japan Automobile Importers Association says its members have raised no complaints about non-tariff barriers for cars. As part of the deal, Tokyo has agreed to encourage Japanese automakers with US factories to import some vehicles back to Japan, which may offer a modest boost to American-built car sales.
