Before Trump's tariff policy took effect, American consumers sparked a "buying frenzy" for cars! The sales of Japanese cars in the US surged.

The latest statistical data shows that the core automotive brands headquartered in Japan saw a sharp increase in car sales in the US market in March, mainly due to American consumers rushing to buy vehicles before President Donald Trump imposes tariffs on imported cars. According to data released on Thursday, Toyota Motor Corp. Sponsored ADR company (TM.US) saw an 8% year-on-year increase in sales in the US market in March, reaching 231,336 units; Honda Motor Co., Ltd. Sponsored ADR company (HMC.US) also saw a 13% surge in US sales. Nissan Motor Co. (NSANY.US) saw a significant 10% increase in sales in the US market, greatly offsetting the negative performance impact of its global sales declining by 3.4% to 353,463 units. It is understood that the Trump administration's policy to impose a 25% tariff on all foreign-made cars went into effect on April 3rd, targeting global car manufacturers including Japan, Canada, and Mexico - key countries and regions highly dependent on exporting cars to the US. This tariff policy has caused a significant uproar in the global automotive industry, putting pressure on global car manufacturers, including those in the US, and increasing the likelihood of American consumers facing rare double-digit price increases in car sales. Furthermore, another crucial tariff measure in the automotive industry is set to come into effect in May. The updated version of the automotive tariff announcement recently released by the Trump administration includes nearly 150 statistical categories of key automotive components, which will face a stringent tariff system starting on May 3rd - meaning that it will be implemented a month later than the 25% tariff on US car imports that officially went into effect at midnight on April 3rd. The updated list of automotive components covers core components such as engines, transmissions, lithium-ion batteries, as well as lower-priced but crucial automotive parts like tires, shock absorbers, spark plug wires, and brake hoses. Rough estimates from agencies show that the total annual import value of US cars and car parts in 2024 is approximately $459.6 billion. However, a somewhat optimistic piece of news is that Trump is planning to exempt some of the toughest tariffs aimed at car manufacturers. Media analysis suggests that this is another concession made by the Trump administration in the trade war, likely influenced by strong lobbying from industry executives in recent weeks. There are also reports that Trump intends to exempt some tariffs on automotive components. Insiders revealed that Trump's approach to tariffs is known as "destacking," which means that the exemptions mentioned above will not affect the 25% tariff that the Trump administration will impose on all imported foreign-made cars (whole cars) nor will it affect the 25% tariff set to be imposed on imported car components starting on May 3rd. The impact of US tariffs on Japanese car manufacturers is particularly significant, given that the US is one of the largest export markets for companies like Toyota, which also have car manufacturing factories in Canada, Mexico, and some Asian countries. While Toyota has stated that it will stick to its production and export plans made at the beginning of the year, other major Japanese car manufacturers have started to adjust their production and export strategies to minimize the impact of tariffs. Mazda Motor Corp. recently announced that it will temporarily halt exports of a popular US-made model to Canada. Honda Motor Co., Ltd. Sponsored ADR company plans to move the production line of its hybrid version of the Civic from Japan to the US; Nissan announced that it will stop accepting orders for SUVs produced in Mexico for the US market. Toyota's global sales (including its subsidiaries Daihatsu Motor Co. and Hino Motors Ltd) reached over 1 million units in March, with an impressive 11% year-on-year increase. Overseas sales totaled 834,467 units, a 6% increase year-on-year, setting a record for the highest overseas sales in a March; additionally, domestic sales in Japan surged by nearly 36%, while overall sales in the North American market increased by 7%. Global car production at Toyota saw a 10% year-on-year increase in March, reaching 977,241 units. Toyota Motor Corp. Sponsored ADR is recovering capacity and sales from a series of regulatory scandals that forced the company to significantly reduce production. Toyota Motor Corp. Sponsored ADR sold approximately 10.8 million vehicles in 2024, slightly lower than the previous year, but still beating the Volkswagen AG, earning the title of "the world's largest automaker" for the fifth consecutive year and cementing its position as the absolute leader in the global automotive industry.