Core Viewpoint - The U.S. is reducing the import tariff on Japanese cars from 27.5% to 15%, which will alleviate the financial burden on Japanese automakers, estimated to decrease by approximately 1.6 trillion yen for seven major companies [2][4]. Group 1: Tariff Changes and Financial Impact - The tariff on Japanese cars was raised to 27.5% earlier this year, but is now being reduced to 15%, providing some relief to Japanese automakers [2]. - The total tariff burden for seven major Japanese car manufacturers will decrease from 3.47 trillion yen to 1.89 trillion yen, leading to a reduction in operating profit decline from 47% to 25% for the fiscal year 2024 [4]. - Specific impacts on individual companies include Toyota's burden decreasing from 1.6 trillion yen to 872 billion yen, Honda from 560 billion yen to 305 billion yen, and Nissan from 470 billion yen to 256 billion yen [4]. Group 2: Strategic Adjustments by Japanese Automakers - Japanese automakers are restructuring their supply chains to mitigate tariff impacts, with Honda shifting production of its "CIVIC" hybrid model from Japan to the U.S. [4]. - Subaru and Mazda, which rely heavily on imports, are expected to avoid severe operational crises due to the tariff adjustments [4]. - Companies are also considering price increases to absorb some of the tariff costs, with Toyota raising vehicle prices by an average of $270 starting in July [6]. Group 3: Challenges and Market Conditions - Despite the tariff reduction, Japanese automakers face ongoing challenges, including inflation and potential declines in car sales due to consumer sentiment [7]. - The high tariff rate of 15% is expected to become the new normal, making it essential for companies to enhance local production and efficiency [7][8]. - The competitive landscape in the U.S. market is becoming increasingly difficult for Japanese automakers, especially with the rise of domestic manufacturers in China [8].

Core Viewpoint - The U.S. is reducing the automobile import tariff on Japan from 27.5% to 15%, which will alleviate the financial burden on Japanese automakers, but the high tariff level is expected to become a new norm, limiting future growth prospects [1][3][7]. Group 1: Tariff Changes and Financial Impact - The estimated reduction in tariff burden for seven major Japanese automakers is approximately 1.6 trillion yen, down from a previous burden of 3.47 trillion yen [3][4]. - The impact on operating profit for these companies is expected to decrease from a 47% drop to a 25% drop for the fiscal year 2024 [3]. - Specific companies like Toyota, Honda, and Nissan will see their tariff impacts reduced significantly, with Toyota's burden decreasing from 1.6 trillion yen to 872 billion yen [3][4]. Group 2: Supply Chain Adjustments - Japanese automakers are restructuring their supply chains to mitigate tariff impacts, with Honda moving production of its Civic hybrid model to the U.S. [4]. - Mitsubishi Motors, lacking a factory in the U.S., will rely on Nissan for OEM production [4]. Group 3: Local Market Reactions - U.S. manufacturers, including General Motors, express dissatisfaction with the tariff reduction, arguing it undermines American industry and labor [6]. - Despite the tariff reduction, Japanese automakers may still face challenges in maintaining competitiveness without price increases, as inflation continues to affect consumer behavior [7]. Group 4: Long-term Outlook - The high tariff rate of 15% is expected to persist, leading to a need for Japanese automakers to enhance local production and operational efficiency [7][8]. - The competitive landscape in the U.S. market is becoming increasingly challenging for Japanese automakers, especially with the rise of domestic manufacturers in China [8].