Why Japan Won’t Embrace American Cars: The Truth Behind Poor Fuel Efficiency and Lack of Right-Hand Drive Options

Donald Trump recently announced a new trade deal with Japan that opens up its market to American cars. However, getting Japanese drivers to choose U.S. vehicles may be a challenge.

Trump highlighted that Japan will lower tariffs, which include a 15% tax on various imports, such as cars and agricultural products. He expressed frustration about the lack of American cars in Japan, stating that while Japan sends millions of cars to the U.S., only a few American vehicles make it to Japanese roads.

According to the Japan Automobile Importers Association, only 16,707 American cars were imported in 2024. Many believe Japan uses non-tariff barriers to keep American automakers out, but representatives from Japan’s auto industry, like Sho Matsumoto, claim this is not the case.

Takeshi Miyao, an auto consultant, notes that U.S. manufacturers like GM and Ford aren’t focused on the Japanese market. They don’t often market their vehicles there or even offer models that comply with Japan’s right-hand driving laws. Miyao adds that American cars tend to be too large for Japan’s narrow streets and limited parking.

This perception isn’t new. Takahisa Matsuyama, a driving instructor in Tokyo, points out that older American models were often seen as unreliable and fuel-inefficient. This belief still lingers today. A recent Consumer Reports study showed that Japanese brands like Subaru and Toyota ranked highest for reliability, while several American brands, including Jeep and Cadillac, fell to the bottom.

In Japan, kei cars, which are compact and fuel-efficient, dominate the market. These vehicles are restricted to a small engine size of 660cc, making them well-suited for the country’s driving conditions. Interestingly, kei trucks have developed a cult following in the U.S. through private imports, showcasing that size isn’t everything when it comes to desirability.

Now, U.S. cars will face a new challenge with raised tariffs in Japan. While the increased tax is less severe than initially proposed, it still marks the highest tariff rate in years. This change caused shares in Japanese automakers like Toyota and Honda to rise significantly.

As part of the deal, Japan has committed to encouraging local brands that manufacture in the U.S. to import some of their cars back into Japan. This could lead to more American-made vehicles being offered to Japanese consumers.

Historically, trade imbalances have often sparked tension between countries. As this situation unfolds, user opinions on social media show mixed reactions. Many American consumers express a desire for more availability of American brands globally, while Japanese users are often hesitant about the perceived drawbacks of U.S. vehicles.

Overall, while this trade deal presents new opportunities, both sides face challenges in changing long-held perceptions and practices.



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