Japan could lose $17 billion in car exports due to US tariffs

The tariffs cover over $460 billion worth of imports of vehicles and auto parts imports annually

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Japan could lose $17 billion in car export potential in the US following President Donald Trump's decision to introduce 25 per cent tariffs on the automotive sector, the International Trade Centre said on Friday.

"Japan's automotive sector comprises 30 per cent of the country's total exports and the majority of exports are headed for the US market.

"Now the US puts 25 per cent tariffs on the sector that translates into fewer means that Japan could lose 17 billion dollars in export potentials in the US, according to our calculations," Julia Spies, ITC chief of trade and market intelligence, told reports in Geneva.

US President Donald Trump's administration on Wednesday confirmed that his 25 per cent global car and truck tariffs will take effect as scheduled on Thursday and that duties on automotive parts imports will be launched on May 3.

The new tariffs cover more than $460 billion worth of imports of vehicles and auto parts imports annually, according to a Reuters analysis.

Slovakia, Japan and Honduras are some of the countries that may exposed to US Tariffs on automotives, the UN Trade agency said. The US market represents a large share of these countries automotive sector exports.

The ITC said Japan may seek to diversify its export destinations for vehicles.