Trump’s tariff war puts Japan’s auto industry on uncertain ground
MOVING ON TO THE ECONOMY, THE WORLD TRADE ORGANIZATION SAID TODAY THE U.S. TARIFF RATE NOW AVERAGES MORE THAN 20%, THE HIGHEST RATE IN MORE THAN A CENTURY. THIS COMES AFTER PRESIDENT TRUMP ORDERED A SERIES OF NEW TARIFFS HOPING TO BRING MANUFACTURING BACK TO THE U.S. CBS’S ANNA COREN JUST VISITED JAPAN’S EQUIVALENT OF DETROIT TO SEE HOW THESE TARIFFS WILL IMPACT JAPAN AND AMERICANS BUYING CARS. >> Reporter: AS THE COUNTRY’S LARGEST EXPORT, JAPAN’S AUTO INDUSTRY IS A SOURCE OF NATIONAL PRIDE. BUT IN RECENT MONTHS, IT’S BEEN ROCKED BY PRESIDENT TRUMP’S TARIFFS, AND THE VOLATILITY HAS BEEN FELT ACUTELY AT MAZDA, ONE OF THE NATION’S OLDEST CAR COMPANIES. >> SHORT-TERM, WE HAVE TO BRACE FOR THE IMPACT. WE WILL WORK HARD TO FIND A WAY TO GO OVERCOME THESE INCREMENTAL COSTS. >> Reporter: THOSE INCREMENTAL COSTS AT THE MOMENT ARE HUGE. ACCORDING TO MAZDA CEO MASAHIRO MORO, THE TARIFFS ARE EXPECTED TO COST MAZDA ALMOST A BILLION DOLLARS THIS FINANCIAL YEAR, WITH THE COMPANY ABSORBING COSTS, AT LEAST FOR NOW. BUT FORTUNATELY, THEY THOUGHT AHEAD. DURING THE FIRST TRUMP ADMINISTRATION, MAZDA DID A JOINT VENTURE WITH TOYOTA, OPENING A FACTORY IN HUNTSVILLE, ALABAMA, AT THE COST OF $2 BILLION. BUT THAT INVESTMENT IN ALABAMA HAS CLEARLY PAID OFF FOR MAZDA. >> PAYING OFF. NOT PAID OFF. [LAUGHS] >> Reporter: THERE’S A DIFFERENCE. >> YEAH. >> Reporter: HOWEVER, IT’S STILL A SMALL FOOTPRINT COMPARED TO THE LARGER JAPANESE CARMAKERS WITH MULTIPLE FACTORIES IN THE U.S. IN THIS CLIMATE OF UNCERTAINTY, MAZDA IS FOCUSING ON WHAT IT CAN CONTROL RIGHT NOW. ROUGHLY HALF THE VEHICLES PRODUCED HERE ARE SOLD TO THE UNITED STATES. THE PLAN NOW IS TO RAMP UP PRODUCTION IN THE ALABAMA PLANT TO LIMIT TARIFF EXPOSURE. BUT THE WORLD CAR FOR MAZDA IS MEXICO, WHERE IT HAS A FACTORY PRODUCING CARS FOR THE U.S. MARKET. UNTIL THAT TARIFF DEAL IS DONE, MAZDA’S CEO CAN ONLY WATCH AND WAIT FOR PRESIDENT TRUMP’S NEXT MOVE. >> Jim: THAT’S ANNA CO
As the country’s largest export, Japan’s auto industry is a source of national pride. But in recent months, it has been rocked by President Trump’s tariffs. The volatility has been felt acutely at Mazda, one of the nation’s oldest car companies. Anna Coren reports.
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50 Comments
Nobody wants made in Detroit. Made in Japan 🇯🇵 is what we want.
Japanese soft bank ceo should also stop investing 100 billion dollars in the United States economy
This is why countries will find new outlets, forge new teade bonds … Leaving the US only the EU to bully.
Both the US and EU are in sharp decline … The EU can save itself but must also decouple from the US both in trade and geopolitical bterms.
The US is over as the leader of the unipolar world which has existed since 1945.. That's the fact of the matter. The world is now Multipolar, lead by BRICS and China.
The Alabama plant merely assembles the cars in the USA. All the inputs are "manufactured" in Asia. USA consumers will still be taxed/tariffed.
The cars are not getting hit with tarrif
Besides buy American
Yes more taxes for Americans..😢
Human manufacturing will not come back to the US, automated manufacturing will do😂😂😂
Mazda's been on the verge of bankruptcy for 20 years
The US automotive industry has been hanging on a thread and most of the components for the US vehicle comes from overseas.
I stopped believing media.
Honda is shifting Civic production from Mexico to Indiana to sidestep tariffs on Mexican-made cars. Production is now slated to begin in Indiana in 2028. 
Nissan is redirecting resources—cutting 20,000 jobs globally and reducing operations to 10 plants by 2027. It intends to increase U.S.-based production to reduce tariff exposure. 
• Industry-wide trend: Several foreign automakers—including Subaru, Nissan, and Mercedes-Benz—are expanding or relocating production to the U.S. to avoid tariffs and take advantage of incentives. 
Broader movement underway: In reaction to mounting tariff costs, automakers like Toyota and GM are planning significant localization efforts, including moving models from Mexico to U.S. production lines.
Simple search
Made in japan is a major selling point for me
No matter what car brand it is it’s about bringing jobs back to the United States. It’s that simple. I personally believe Americans can build and design things just as good as any other country including Japan. It’s just being allowed to where the engineer can build the car and not the accountant. I personally prefer buying American car brands over Japanese, but to each their own. In my opinion, American cars are just as good as long as you take care of them and granted there are some pretty horrid designs out there.
This bothers me considering Mazda makes some of the best cars I’ve ever owned.
And the prices of Mazdas will go up even more. I am glad to see all this winning while making America great again.
Love to get parts from US instead of waiting a month
People will always pay the higher cost for a Toyota
Thank God, the Supreme Court has declared Trump's Tariffs void and illegal.
How much terrifs does Japan put on our automobiles and Harleys
Trump said will end the war in 24 hours but not to give land to Russia
It would be a lot easier for Japan and for the entire world if they stop exporting all of their products to our country.
Wow! It should have been done in the 1970s
Trump is the dumbest president ever
Japan should start closing plants in the south. That will force Trump to change course.
Will only buy a Japanese car made in Japan
These tariffs are a great idea–only they should have been enacted about 1960–now is too late.
I'm going to buy Japanese cars, especially Toyotas and Lexuses for the rest of my life. Their reliability is just incomparable to any other brands.
American car manufacturers have never been able to be gas efficient and reliable. They were extremely slow to get on the hybrid and EV market. Slow in making technology innovations. Slow in fixing years long problems with their cars.
Note: Teslas are an exception.
Made in zacapoaxtla land , now wonder why Mazda sucks 😒 same as Honda 😢once they close their plants in Canada and moved to Guanajuato the quality took a 💩 😒😐
if you think mazda is bad, think audi or porsche, 0 factory in US.
If we thought owning a Japanese Vehicle was considered a value like owning Gold, it is now really becoming Platinum😅
Trump sucks!!! Worst president ever!!!!
Good!! I’m tired of seeing all these Japanese cars
Who cares about the Japanese automakers
Japan auto have been hit by the Chinese EV in world demand and Trump tariff in America market. It certainly hit the sunset sooner than expected!
American auto manufacturers can’t compete because of poor reliability and high depreciation, daddy trump making it impossible to buy anything decent now…. Thanks trump, you’re the best!
Raise the prices
How is it still his first year….
South park do the thing 😅
Amazing to see how Japan licked the boot of america to lower the tariff on automotive business, sending a men 8th times to discuss
Let me ask one question. 45k American car vs. 50 k Japanese car. Which one will u buy? I will choose Japanese car. Easy to payoff that 5k difference from maintenance
We Americans can’t even afford good Japanese cars. But that billionaire swims in cash!!!
You’re just wrong.
Why?
Because Japan was smart enough to move it’s manufacturing plants of most popular models to the US years ago, at the same time that US automakers were moving them to Canada and Mexico for cheaper labor. So now most Japanese cars are immune from tarry.
Japan's auto industry has a dire outlook: the rise of EV industry worldwide, and the sudden jump in tariff on their ICE automobile exports to the USA market… 🙄🙄🙄
America first
Japanese cars are now suffering from lack of quality. Definitely not what they used to be yes even Toyota.
Japan has been charging 20-30% tariffs on imported American products for decades while the usa charged no import tariffs on Japanese goods. Trump simply made our tariffs match theirs
Time for my Dad to get his GX550 before it’s made in Alabama 😂
Good. Buy american. We have too many Oriental cars in the US as it is
They have no leverage, build them here!
Even the reporter isn't made in America