On September 5, the Trump administration declared a cut in the hefty tariffs levied on Japanese automobiles, offering Japanese car manufacturers a fleeting moment of relief. Nevertheless, the reduced tariff rate, now at 15%, still stands at six times the initial 2.5%, presenting a significant challenge to Japanese small car companies. When compared to their larger counterparts such as Toyota and Honda, small car makers like Mitsubishi Motors, Mazda, and Subaru possess weaker resilience to the repercussions of tariffs. These prominent exporters to the United States might be compelled to keep increasing prices, which would, in turn, intensify inflationary pressures on American consumers. Analysts highlight that these firms may ultimately be driven to forge closer cooperative ties with their rivals, halt the sale of specific models in the United States, or even contemplate exiting the US market altogether.