Major Japanese automakers have denied that they raised car prices in the U.S. because of tariffs imposed by the Trump administration.
The denials follow a Nikkei Asia report that claimed companies like Toyota, Honda, and Nissan were “passing some of the expense of U.S. tariffs through to American car buyers” — a departure from their earlier strategy of absorbing tariff costs.
Tariffs Reduced but Still a Factor
Japan was hit with 25% tariffs on automobile exports to the U.S. in April, but the rate was lowered to 15% under a trade agreement reached with the Trump administration on July 22.
Despite the tariffs, Toyota told CNBC that its U.S. price increases in July were part of its regular, annual adjustments to cover operational costs — not a response to tariff measures. “Our stance was not to increase prices to avoid making our cars unaffordable for customers waiting for their vehicles,” the company said.
Toyota previously projected the U.S. tariffs would cost it about 450 billion yen ($3.03 billion) in its first quarter, with the annual impact potentially reaching 1.4 trillion yen.
Honda and Nissan Emphasize Local Strategy
Honda said it has avoided passing tariffs directly to customers, pointing to its success in producing more U.S.-assembled vehicles. The company noted that many of its cars rank high on Cars.com’s American-Made Index, which weighs factors such as U.S. assembly and parts sourcing.
“Any price changes for the 2026 Honda models now on sale are tied to added feature content that enhances value for the customer,” Honda added.
Nissan also denied raising prices because of tariffs, emphasizing that it relies on U.S.-based plants to offset costs. “We are managing inventory to meet consumer demand while maintaining competitive pricing,” the company said.
What The Author Thinks
The denials may be technically true, but tariffs always find a way into the final price tag — whether through higher costs elsewhere in the supply chain or future adjustments masked as “annual” increases. Japanese automakers may be trying to protect their brand reputation in the U.S., but the numbers they’ve reported on tariff impacts make clear that some of the financial weight will eventually trickle down to consumers.
Featured image credit: Grégory Costa via Pexels
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