U.S. President Donald Trump has announced a 25% additional tariff on all imported automobiles -- a hardline protectionist policy that will drive up the tariff rate on Japan-made vehicles more than tenfold.

The move could rock Japan's flagship industry, causing negative repercussions to people's livings. The Japanese government needs to explore every avenue to protect the basis of the country's economy.

While Trump had similar tariff plans during his first presidency, he stopped short of invoking them. This time around, he apparently aims to drive his achievements home ahead of the midterm elections in fall 2026 by curtailing trade deficits at an early date.

Japan was the third-largest exporter of vehicles to the United States in 2024 following Mexico and South Korea, shipping some 1.37 million units. Trump slammed those imports, claiming that they have dealt a blow to American companies and deprived people of jobs, and calling the fresh tariffs the start of "liberation day" in America.

Blatant self-righteousness putting America first

Trump's argument is missing the point.

Japanese vehicles gained market share as their makers served American consumers' needs. Energy-efficient compact cars became popular in the U.S., where large gas-guzzlers are the mainstream.

Starting in the 1980s, when Japan-U.S. automobile competition intensified, Japanese makers aggressively built plants in the U.S. Annual production topped 3 million units, generating over 2 million jobs including those in related industries. Trump nevertheless has put "America first," with a hardly tolerable, self-righteous attitude.

Under the trade agreement signed with Japan during his first administration, Trump agreed to lower U.S. auto tariffs in the future. The latest move obviously runs counter to the accord. This is strikingly unfair considering Japan scrapped auto tariffs back in the 1970s.

Trump's announcement that the high tariffs would be permanent is apparently aimed at encouraging foreign automakers to shift their production bases to the U.S. However, long-term planning is essential for companies to construct factories overseas. If politics compels such moves, businesses won't be able to make sound investments.

The protectionism will also undermine American national interests. Japan once restricted the volume of auto exports to the U.S. at the latter's urging. Regardless, U.S. automakers' performance didn't pick up, with General Motors Co. and other firms going under because they maintained a high-cost structure and failed to develop competitive products.

For Japanese automakers, the U.S. market is a gold mine. Nearly 30% of all Japanese exports to the U.S. last year were automobiles, valued at 6 trillion yen (approx. $39.8 billion).

Automobiles contain many parts, and their production involves a broad range of companies. The upcoming tariffs are expected to trigger far greater repercussions than those imposed by the U.S. on steel and aluminum products in February.

Dai-ichi Life Research Institute Inc. estimates that Japanese exports may drastically decline, pushing down real growth by 0.5%. As the sluggish economy's growth rate stood at a mere 0.1% in 2024, the auto tariffs could even accelerate an economic downturn in the country.

If Japanese automakers cut domestic production, it may impact wages for their workers. Backed by robust exports, the domestic auto industry has led pay negotiations during the spring labor offensive, but if the momentum is staved off due to the fresh tariffs, household budgets already struggling with rising prices will face a further crunch.

Countermeasures in tandem with other countries needed

It was only natural Tokyo asked Washington to exempt Japan from the high tariffs. Now, the government should persistently urge their swift withdrawal.

It is also necessary to prepare for their implementation. Of particular concern is the toll the tariffs may take on vulnerable small and midsize subcontractors. As this is an issue involving over 5 million jobs including in related industries, the government must extend all possible means to support funding and employment.

Working with other countries is also imperative.

The auto sector is a key industry in Europe and South Korea as well. Many foreign automakers operate plants in Mexico, known for its cheap labor, making it an export hub to the U.S.

Trump's targets are not limited to automobiles. He has announced reciprocal tariffs for countries imposing higher tariffs on U.S. goods. Japan must join forces with other countries to urge Trump to change his decision.

The European Union and Canada have resorted to retaliatory tariffs. They have also filed suit with the World Trade Organization, arguing that the U.S.' unilateral tariff hikes run afoul of international rules.

Japan has forgone any countermeasures, apparently in the belief that provoking Trump, whose reaction is unpredictable, is not a good idea.

However, the U.S. is mercilessly targeting not just rival China, but also its allies including Japan and European countries.

We must not overlook this course of events gravely undermining the free trade regime that has underpinned global economic growth after World War II. Japan should adopt a firm stance on the issue.