Japanese carmakers have largely absorbed the cost of U.S. President Donald Trump¡¯s tariffs on auto imports, a move that may undermine the Asian nation¡¯s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.
So far, just three of Japan¡¯s six major automakers have raised prices in the U.S., and only Subaru¡¯s hike has come close to the 25% tariff imposed on imported vehicles.
Toyota, the world¡¯s No. 1 carmaker, only lifted prices on some models by a few hundred dollars while Mitsubishi Motors increased prices by an average of just 2.1% across three models. The average price of a new car in the U.S. rose 2.5% in April to about $48,700.
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