Japanese Automakers Lose $20M Daily From US Tariff Delay

The recent US tariffs on auto components and vehicles have significantly impacted Indian and Japanese manufacturers. India faces a potential short-term loss of 15-20% in its $7 billion U.S.-bound auto-component exports due to the cumulative 50% tariff imposed, with suppliers in other countries ready to quickly take over orders, threatening India's market share. Meanwhile, Japanese automakers are losing approximately $20 million daily in profits as the US delays reducing auto tariffs from 27.5% to the agreed 15%, with the full-year impact estimated at $18.3 billion, cutting operating profits by 36% for major manufacturers. Companies like Mazda, Subaru, and Toyota are experiencing substantial profit drops, prompting them to consider cost-cutting and cautious price hikes to offset losses, though such hikes risk reducing competitiveness. The timing of tariff reductions remains uncertain, hinging on ongoing US-Japan negotiations and President Trump's decisions, with Japan urging for swift tariff relief to minimize economic damage. Overall, these tariffs reshape the competitive landscape, forcing adjustments in pricing, supply chains, and export strategies for both Indian and Japanese auto industries.