When U.S. President Donald Trump said he doesn't see American cars on the roads in Japan, he wasn't really exaggerating. A decade earlier, then-President Barack Obama made a similar statement.
Last year, 449 Cadillacs were sold in the country, and 587 Chevrolets. Ford left the market altogether in 2016.
“They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs,” Trump wrote on Truth Social earlier this month. He also reportedly told Japanese trade negotiators last week that no U.S. cars are on the roads of Japan.
In the United States, about 6 million cars produced by six Japanese automakers, made locally and imported, are sold annually.
The U.S. introduced new 25% tariffs on vehicles earlier this month. Next month, auto parts will also be hit with a 25% tariff.
Trump blames Japan's inspection process and what he argues are unnecessary safety standards for the absence of American cars in Japan. He has cited the bowling-ball test, a test in which a metal sphere is dropped on the hood of a car, as an example.
Other possible factors often brought up by industry watchers to explain the absence include price, quality and after-sales service.
Some argue that there is a simpler explanation.
“One possible reason why American cars have struggled in Japan is simply because they're big,” said Takaaki Sugiura, research director at the Mitsubishi Research Institute.
In Japan, Japanese brands dominate. Minivehicles, known as “kei cars,” are especially popular. Honda’s N-BOX minicar was the country's top-selling model last year. More than 200,000 units were sold.
Domestic consumers gravitate toward minicars because they are generally more reasonably priced and their running costs are lower than standard-size cars.
Among foreign brands, German cars have maintained their popularity in Japan.
According to data from the Japan Automobile Importers Association, Mercedes-Benz is the best-selling foreign car brand in the country, with 53,000 units sold last year, followed by BMW and Volkswagen.
American cars used to have more presence back in the 1990s. In 1998, more than 4,000 Cadillacs were sold in Japan, and in 1996, over 23,000 Chevys. Jeep is one of the few U.S. car brands whose sales are not in a downward trend, fluctuating between 9,500 and 14,000 units in recent years.
The Big Three U.S. automakers — General Motors, Ford and Stellantis — used to make smaller models, but their recent lineups focus on sport utility vehicles and pickup trucks, Sugiura said. Chevrolet and Cadillac are General Motors brands while Jeep belongs to Stellantis.
“SUVs are popular in Japan, but American SUVs tend to be larger than those of Japanese makers."
Large cars are not generally suited for driving in busy cities that have many narrow roads, such as Tokyo. They are harder to park compared to smaller vehicles.
Also, because Japan is a right-hand drive market, consumers are generally hesitant to purchase left-hand drive vehicles.
In its effort to attract more customers, General Motors introduced the Cadillac Lyriq, an all-electric SUV, in Japan last month, the first Cadillac for the Japanese market in 12 years with the steering wheel on the right side.
Sugiura also pointed out the lack of dealer networks for U.S. carmakers, as the quality of after-sales service is essential for consumers.
“European automakers have established solid dealer networks, nearly equivalent to those of Japanese car manufacturers. Their services are actually often considered even better,” he said. “Because of this, people who have purchased a European car tend to continue buying them."
Japan doesn't impose tariffs on imported cars, including those from the United States, but the Trump administration has claimed that Japan has nontariff barriers that have made it difficult for the U.S. carmakers to increase their presence in the Japanese market.
A report on foreign trade barriers released by the U.S. Trade Representative in March mentions safety regulation, saying Japan does not accept U.S. safety certifications and requires “unique standards and testing protocols.”
It also points out that subsidies for clean-energy vehicles have mostly benefited Japanese automakers.
Transport minister Hiromasa Nakano has said the government is reviewing the nontariff barriers but has declined to comment on specifics.
Sugiura said there may be some differences in regulatory or other relevant systems in each country, but European cars have maintained a certain level of popularity while Tesla has also increased its presence.
“It's hard to believe that there are nontariff barriers that cause a critical disadvantage,” he said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.