Japanese carmakers have largely absorbed the cost of U.S. President Donald Trump’s tariffs on auto imports, a move that may undermine the Asian nation’s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.
So far, just three of Japan’s six major automakers have raised prices in the U.S., and only Subaru’s hike has come close to the 25% tariff imposed on imported vehicles.
Toyota, the world’s No. 1 carmaker, only lifted prices on some models by a few hundred dollars while Mitsubishi Motors increased prices by an average of just 2.1% across three models. The average price of a new car in the U.S. rose 2.5% in April to about $48,700.
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