On April 3, 2025 (local time), the U.S. government began imposing a 25% tariff on finished vehicles from all over the world, including Japan. Tariffs on engines, transmissions, and other major components will be imposed by May 3, 2025.

For imports from Canada and Mexico, the 25% tariff will be applied as a base, but as a special measure, the tariff rate will be adjusted according to the ratio of U.S.-made parts for USMCA-applied products.
However, the imposition of tariffs on Canada and Mexico, which have functioned as a free trade zone up to now, will mean the collapse of the “Made in “North” America,” which has strategically utilized the three North American countries as a single production area since NAFTA took effect in 1994, due to their easy access to the US, labor costs, etc. “Made in “North” America” means the collapse of the “Made in “North” America.

If the Trump administration continues to forcefully pursue its policy of prioritizing its own interests, the turmoil will continue on a yearly basis, and as far as the situation as of April 2025 is concerned, it will be essential to produce in the U.S. in order to profit from the U.S.
In addition to the time required to reestablish the automobile production base, many other issues remain, including the problem of labor shortages in the manufacturing industry.

Although it will depend on the position of the USMCA in future negotiations, there is no doubt that the automotive industry, which has been making full use of Canada and Mexico since NAFTA came into effect, will be negatively impacted.