US Tariff on Auto Parts from Japan

Japan is a major source of automotive parts for the US market, driven by Toyota, Honda, Nissan, and tier-1 suppliers like Denso, Aisin, and JTEKT. Tariff rates vary depending on the specific part.

General auto parts face 12.5% total: 2.5% MFN base rate + 10% Section 122. However, certain key components — engines, transmissions, electrical systems, and body parts — are covered by the 25% Section 232 automobile tariff. The anti-stacking rule means Section 232 parts pay 25% only (not 25% + 10%).

Japan's auto parts exports to the US include: engines and engine components (Toyota, Honda), transmissions (Aisin, JATCO), electronic control units, suspension components, braking systems (Akebono), bearings (NSK, NTN), and specialized materials like automotive steel and glass.

The distinction between Section 232-covered and non-covered parts is critical for cost planning. Major assemblies (engines, transmissions) and body components face the higher 25% rate. Smaller components, fasteners, filters, and accessories typically face the lower 12.5% rate. Always verify the HTS classification for your specific parts.

Compared to Mexico (0% USMCA), Japan is significantly more expensive for auto parts. Compared to Germany (same 12.5% base), Japan is equivalent on tariff but may differ on shipping costs. Compared to China (27.5% base + Section 301), Japan is cheaper on general parts but comparable on Section 232-covered components.

Many Japanese automakers have responded by expanding US and Mexican manufacturing. Toyota's operations in Kentucky, Indiana, and Alabama, and Honda's Ohio operations, produce parts domestically to avoid tariffs. The trend toward nearshoring Japanese auto parts production to Mexico continues to accelerate.