From cars to electronics to medical supplies, Americans depend on Japanese imports every day. Now, with the Trump administration imposing a blanket 15% tariff on nearly all of them, the cost of living could climb even higher. Washington insists foreign governments will shoulder the burden. However, as businesses pass costs along, it’s U.S. households that are most likely to bear the brunt of the price.
As Trump attempts to shape the media narrative on Japanese imported goods tariffs, an alleged win for fairer trade agreements, many Americans are left wondering how it will impact their pocketbooks.
Initially, the Trump administration threatened tariffs as high as 25% on all imported goods from Japan, with a specific 27.5% tariff on imported automobiles, before the September agreement was finalized. The trade framework also included a pledge from Japan to invest $550 billion in American industries; however, if Japan fails to uphold that agreement, tariffs will be returned to the previously threatened 25% rate at the president’s sole discretion.
While the administration’s decision to drop the proposed 25% tariff in favor of the 15% tariff on Japanese imported goods has been praised by some as a win, what exactly does it mean as we head into the final quarter of 2025?
Japanese car manufacturing giant Toyota reported in August that it is projecting a near $10 billion loss in revenue as a result of the new tariffs imposed by the Trump administration. Even American car conglomerates are not spared, as GM and Ford are expected to incur roughly $3-4 billion in losses this year, primarily due to global tariff increases on aluminum and steel. This raises the question: who will be footing the bill for the losses these car manufacturers are incurring?
Originally, the Trump administration claimed that foreign governments would be the ones “eating” the negative financial losses caused by tariffs. Still, all data have shown that businesses in the countries in which the tariffs originate and American consumers themselves are the ones paying the most for these price increases due to tariff policies. At a time when core inflation is as high as it has been in months, we must ask ourselves if now is the time to accelerate these massive tariff increases on goods that Americans use every day.
American families will likely pay more for electronics, medical equipment, and certain paper products imported from Japan as a result of these tariffs. With nearly three-quarters of Americans struggling financially to make ends meet, now is not the time for these tariffs to be implemented.
Throughout history, targeted tariffs have played a role in producing fairer trade for specific American industries. However, a “one size fits all” approach to the issue has never panned out well. We have not seen blanket tariffs on all imports from certain countries since the Smoot-Hawley Tariff Act of 1930, which essentially caused international trade to come to a near standstill just before the onset of the Great Depression.
Even during his first term in office, President Trump’s tariffs on certain imported goods, which accounted for roughly 15% of all American imports, caused prices to increase for car manufacturers and home builders. Suppose those more targeted tariffs still caused massive issues for consumers and businesses alike on less than one-fifth of all imports. What will be the consequences in a year or two when nearly 70% of imported goods are being subjected to these massive tariff increases? Tariffs sold as victories for fairness may instead become a not-so-hidden tax on every American family.