On the morning of August 3 (afternoon of August 2, Japan time), the Trump administration in the United States announced the imposition of a 25% tariff on essential automotive components, including engines and transmissions. These parts constitute a significant portion of Japan's exports to the US, and this measure will inevitably impact Japanese companies. However, acknowledging the reliance of many automakers on overseas parts, the US government has instituted a two-year tax reduction period for vehicles manufactured domestically. Prior to this, the US had imposed a 25% tariff on imported cars on April 3. This new tariff on auto parts will exacerbate the operational pressures on companies heavily reliant on the US market for their automotive-related businesses. According to Japanese trade statistics, Japan's exports of auto parts to the US surged by 14.4% year-on-year in 2024, totaling approximately 1.2 trillion yen (roughly 60 billion yuan), while auto exports increased by 3.1% to about 6 trillion yen. Together, auto and parts exports accounted for one-third of Japan's total exports to the US.