Donald Trump has declared that Japan will open its domestic market to American cars under the bilateral trade deal announced this week, but experts say US manufacturers face significant cultural and practical hurdles. The agreement includes 15% tariffs on Japanese car imports, up from 2.5%.
Japan imported only 16,707 American vehicles in 2024, according to the Japan Automobile Importers Association. In contrast, European brands – led by Mercedes-Benz – sold more than 250,000 vehicles in the same market. Japanese automakers continue to dominate their home market.
Takeshi Miyao, head of the Carnorama auto consultancy, says US companies do not focus on Japan: “They don’t really do any marketing, and often don’t even offer right-hand drive models.” The Ford F-150 pickup, for example, is around six metres long and two metres high, making it ill-suited to Japan’s narrow roads and tight parking spaces.
Image is also a problem. “Going back to the days when we first came across US cars like Cadillacs, they’re seen as having terrible fuel efficiency and breaking down easily,” says Takahisa Matsuyama, a chauffeur instructor. Consumer Reports’ 2025 reliability rankings placed four Japanese brands at the top, while American marques Jeep, GMC, Cadillac and Rivian filled the bottom four spots.
Investors have welcomed the tariff figure as lower than the threatened 25% increase, sending the Nikkei 225 up over 4%. Shares in Toyota, Honda and Nissan all rose more than 10%. As part of the deal, Tokyo has agreed to encourage Japanese automakers with US factories to export some of those vehicles to Japan.
