Automobile manufacturers in Japan begin increasing prices within the U.S., ending a temporary spell of bearing the added expenses following the implementation of tariffs
Japanese Automakers Raise Prices of Passenger Cars Shipped to North America
In a significant development, Japanese automakers have increased the prices of passenger cars shipped to North America in July. This marks the first month-over-month price rise in six months for these automakers.
The price hike is attributed to the costs of U.S. tariffs being passed on to U.S. car buyers. Notably, even entry models from Japanese automakers saw higher prices in the U.S. market.
Toyota Motor Corporation (NYSE:TM), Honda Motor (HMC), Nissan Motor (OTCPK:NSANY), Mazda Motor (OTCPK:MZDAY), Subaru Corporation (OTCPK:FUJHY), Mitsubishi Motors Corporation (OTCPK:MMTOF), Suzuki Motor Corporation (OTCPK:SZKMY), Isuzu Motors Limited (OTCPK:ISUZY), and Hino Motors (OTCPK:HINOY) also raised prices of their models in the U.S. in July.
On a contract-currency basis, prices also increased for the first time in five months. The July price increases for Japanese automakers were significant enough to be observed on an annualized basis.
It's important to note that the price increases are not solely due to exchange rate movements. The 15% tariff implemented in the U.S. has led to price increases for U.S. car buyers, although significant increases have been avoided so far.
For Toyota, the price increase was less than the full cost of the tariff, but marked a notable increase on an annualized basis. The average price increase for Toyota-brand models in July was $270.
The July data showed higher prices across most Japanese models sold in the U.S. This price increase is a response to the costs of U.S. tariffs, not exchange rate movements.
Automakers are beginning to show signs of being affected by the costs of the tariffs, after previously warning that the approach of finding ways to absorb the costs may not be sustainable for the long run. The Japanese auto stocks listed (Toyota, Honda, Nissan, Mazda, Subaru, Mitsubishi, Suzuki, Isuzu, and Hino) were affected by the costs of U.S. tariffs in July.
However, specific details about which Japanese automobile manufacturers raised prices in July 20XX for cars exported to the United States, nor the average price increase for these models, could not be found in the available search results. The search results discuss new US tariffs affecting some countries and auto imports from Korea but do not specify Japanese car manufacturers or exact price increases in July 20XX.
Despite this, it's clear that the automotive industry is feeling the impact of the tariffs, and consumers may expect to see continued price increases in the coming months.
