Japanese automakers are changing their strategy when it comes to absorbing the cost of US tariffs on imported vehicles. New data shows that they are now passing some of these costs onto American car buyers, marking a shift from their previous approach.
Until recently, Japanese automakers had been absorbing the impact of US tariffs to keep U.S. retail prices steady. However, with the latest developments, it appears that this strategy is no longer effective. As a result, companies are now passing some of the expense onto consumers, making them bear a larger share of the cost.
This change comes as auto export prices rise for the first time in six months, according to new data. The increase is attributed to the shift in strategy by Japanese automakers, which are now passing on the costs to American car buyers. This marks a significant change in the way these companies operate in the US market.
Source: https://asia.nikkei.com/business/automobiles/japan-automakers-start-to-pass-on-trump-tariff-costs-to-us-consumers