Japanese automakers have begun passing the costs of U.S. tariffs onto American consumers

Toyota raised U.S. prices in July by roughly $270 per vehicle, while Subaru — which derives about 70% of its global sales from the American market — lifted prices on certain models a month earlier. Subaru estimates the tariffs imposed under President Donald Trump’s administration will cut its 2026 earnings by around ¥210 billion. The move marks the first month-to-month increase in passenger car prices to North America in six months and aligns with the upward trend signaled by the Bank of Japan’s corporate goods price index.

Preliminary figures from Japan’s Ministry of Finance show auto exports to the U.S. fell sharply in July, dropping 28.4% year-on-year in value to ¥422 billion ($2.86 billion), with volumes down 3.2% to 123,531 vehicles. However, the average unit price rose to ¥3.41 million, up ¥30,000 from June, pointing to stabilization after several months of decline.

The additional tariffs introduced in April — a 25% levy on top of the existing 2.5% duty — have left Japanese automakers facing a 27.5% tax rate. Although a U.S.-Japan trade agreement signed last July calls for lowering tariffs to 15% overall, the timing of its implementation remains uncertain.