Massive new trade deal cuts tariffs for Japanese cars to 15%, leaves EU carmakers reeling at 35%, and accidentally supercharges JDM hybrid culture in the process
Well, no one saw this one coming, did they? In what may turn out to be one of the most significant moments in modern automotive geopolitics, Japan and the US have quietly signed a trade deal that slashes tariffs on Japanese car imports into America down to just 15% — and, wait for it, with no import quotas whatsoever. That’s right. The floodgates are open.
Meanwhile, over in Europe, carmakers still face punishing 35% tariffs under Trump’s “Liberation Day” policy, as Brussels scrambles to strike a similar deal before their export margins go up in smoke.
But here’s the thing – Japan’s long-standing resistance to full EV adoption (sticking instead with efficient petrol engines, hybrids, and hydrogen) now perfectly aligns with Trump’s anti-EV, pro-choice stance. That’s not just serendipity. That’s a power play. Petrol power.
Share Prices Soar, and JDM is Back, Baby
Toyota, Honda, and Mazda shares shot up 11–17% off the back of the deal, proving the market knows exactly who’s winning here. And for JDM fans? This is a revival. Expect more GRs, Type Rs, maybe even a rotary revival or two, because Japan just got a green light to sell as many hybrids and ICE cars to the US as they like with less duty than most of the rest of the world!
Europe Left Behind
The EU, on the other hand, is paying the price for going all-in on EVs. Despite investing over €250 billion into electrification, gigafactories, and supply chains, they’ve been caught off guard by policy reversals, subsidy cuts, and a lack of infrastructure support. Now, their export competitiveness is under serious threat – through no fault of their own.
China: EV Juggernaut With a Dirty Secret
And then there’s China, pumping out EVs like there’s no tomorrow – literally buying more ships to export them. But behind the zero-tailpipe message lies a monstrous carbon footprint from EV production, coal-powered factories, rare earth mining, plus battery logistics and of course shipping. It’s not all quite as green as it looks.
So… Who Actually Wins?
In the short term, Japan wins big – access, investment, momentum.
In the long term? It’s murky. This move risks derailing global decarbonisation goals, widening the gap between trade policy and climate strategy.
As petrolheads, we may celebrate the return of exciting JDM cars… but we can’t ignore the bigger picture.
Over to you:
Is this brilliant strategy? A dangerous pivot? Or a bit of both?
What does this mean for your next car purchase – EV, hybrid, or sticking with a good old petrol motor?
👇 Let me know in the comments!
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