The Japanese auto industry, especially component producers, are receiving lower-than-usual sales orders from clients likely because of the US' blanket 25pc tariff on car imports, the country's trade and industry ministry (Meti) said today.
The impact of the US levy on domestic industries is emerging, according to a survey conducted by Meti. Concerns about the future sales outlook and business climate are also growing, it added. Meti has been conducting the survey on the US measure since early April, and released the preliminary results based on around 3,100 responses.
An unnamed auto part producer received slightly lower than usual sales orders for April-June. But the tariff could cut its July orders by 20pc from usual levels, according to the survey. The actual sales order volume was not disclosed. Meanwhile, a manufacturer of car air conditioners was asked to delay its delivery for three months from June to September, likely because of the tariff measure, Meti said.
An auto interior material producer said its business is reaching its breakeven cost, adding that it received 15pc fewer orders. The firm also said it may have to consider seeking new clients in non-car industries to secure profits, according to Meti. Another component producer said its US subsidiary is bearing the 25pc tariff on its raw material imports from Japan, adding that it is concerned about to what extent the situation would deteriorate.
It remains unclear if or how much Japanese car producers will reduce their deliveries to the US, as Tokyo and Washington continues negotiations regarding the measure. Japan's passenger vehicle exports to the US increased by 12pc in April from a year earlier to 124,428 units, despite the tariff.
