
Workers in Toyota City in Japan's Aichi prefecture assemble a Prius. Japan's auto manufacturing sector is heavily export-driven, and the United States is a prime destination for its cars.
For more than four decades, automobile manufacturing has been a key pillar of Japan's industrial sector. And today, auto exports are a mainstay of the Japanese export economy, with exports to the United States accounting for a significant share. As with all other exporters that ship autos into the U.S. market , Japan's carmakers are facing down the threat of a tariff of up to 25 percent on their products . But unlike some other auto-exporting countries, Japan, which has car manufacturing operations spread across the continental United States, is positioned to absorb some of the damage that auto tariffs could bring. Citing concerns about national security, the White House is considering auto tariffs in its efforts to reduce the overall trade deficit and shore up the U.S. domestic auto sector.